Front Cover Photo Credit: National Bison Range, USFWS
Table of Contents
MESSAGE FROM THE DIRECTOR OF U.S. FISH AND WILDLIFE SERVICE ....................................5
I. THE UNITED STATES FISH AND WILDLIFE SERVICE ...................................................................7
A. MISSION AND ORGANIZATION.................................................................................................................. 8
B. ORGANIZATIONAL CHART...................................................................................................................... 10
II. MANAGEMENT’S DISCUSSION AND ANALYSIS...........................................................................11
A. MISSION GOALS AND PERFORMANCE..................................................................................................... 12
Mission Goal 1 - Resource Protection................................................................................................ 13
Mission Goal 2 - Resource Use .......................................................................................................... 13
Mission Goal 3 - Recreation............................................................................................................... 14
Mission Goal 4 - Serving Communities............................................................................................. 14
Mission Goal 5 - Management Excellence ........................................................................................ 14
Data Verification............................................................................................................................... 15
Data Validity ..................................................................................................................................... 15
B. MANAGEMENT CONTROLS AND LEGAL COMPLIANCE ............................................................................. 16
C. FINANCIAL HIGHLIGHTS ....................................................................................................................... 17
D. LIMITATIONS OF THE FINANCIAL STATEMENTS...................................................................................... 19
E. ANALYSIS OF FINANCIAL STATEMENTS.................................................................................................. 20
III. U.S. FISH AND WILDLIFE SERVICE FINANCIAL STATEMENTS ..............................................23
A. PRINCIPAL FINANCIAL STATEMENTS ..................................................................................................... 24
B. NOTES TO PRINCIPAL FINANCIAL STATEMENTS..................................................................................... 29
Note 1 - Summary of Significant Accounting Principles .................................................................. 29
Note 2 - Assets Analysis .................................................................................................................... 37
Note 3 - Fund Balance with Treasury and Cash .............................................................................. 38
Note 4 - Investments, Net.................................................................................................................. 39
Note 5 - Accounts, Interest, and Taxes Receivable, Net................................................................... 40
Note 6 - General Property, Plant and Equipment (PP&E), Net ...................................................... 41
Note 7 - Seized and Forfeited Property............................................................................................. 42
Note 8 - Liabilities Analysis .............................................................................................................. 43
Note 9 - Operating Leases ................................................................................................................. 46
Note 10 - Imputed Financing Sources............................................................................................... 47
Note 11 - Dedicated Collections......................................................................................................... 48
Note 12 - Combined Statement of Budgetary Resources ................................................................. 49
Note 13 - Consolidated Statement of Financing – Allocation Transfers ......................................... 51
Note 14 - Consolidating Statement of Net Cost................................................................................ 52
C. REQUIRED SUPPLEMENTARY INFORMATION .......................................................................................... 55
Combining Statement of Budgetary Resources ................................................................................ 56
Facilities Management ...................................................................................................................... 58
D. REQUIRED SUPPLEMENTARY STEWARDSHIP INFORMATION ................................................................... 60
Stewardship Lands ............................................................................................................................ 61
Stewardship Investments .................................................................................................................. 63
Heritage Assets ................................................................................................................................. 65
IV. INDEPENDENT AUDITORS’ REPORT ............................................................................................73
Message from the Director of U.S. Fish and Wildlife Service
I am pleased to present the U.S. Fish and Wildlife Service’s Annual Financial Report, providing information on
our financial, management, and programmatic results for fiscal year 2004.
I am proud to announce that the Service has received an unqualified audit opinion from the independent
auditors who concluded that the Service’s financial statements are presented fairly in all material respects. This
demonstrates our dedication to maintaining sound financial practices and reliable financial information to
support our commitment to effectively managing resources to protect and enhance fish, wildlife, and plants and
their habitats for the benefit of this and future generations.
We addressed fiscal challenges in fiscal year 2004. The Independent Auditors’ Report for fiscal year 2003
identified one reportable condition involving areas relating to general controls over financial management
systems where controls need to be improved. Additionally, five reportable conditions related to internal controls
over financial reporting and processes, including one material weakness pertaining to processes, controls, and financial reporting related to
property, plant, and equipment. With regard to compliance with laws and regulations, the Service was reported not to conform to portions
of the Federal Financial Management Improvement Act (FFMIA).
We aggressively implemented actions for all reportable conditions and except for the reportable condition relating to general controls over
financial management systems, all were resolved or downgraded in the Independent Auditors’ Report for fiscal year 2004. The Service has
and will continue to take specific corrective actions to ensure greater security and general controls over sensitive information systems.
Therefore, with the exception noted, I conclude that the controls provide reasonable assurance that Service operations are being conducted
consistent with the intended objectives of Office of Management and Budget’s (OMB) Circular A-130.
Also in fiscal year 2004, we evaluated the Service’s management controls as required by the FFMIA. The purpose of this evaluation is to
identify any material weakness that places the overall control system at risk and to ensure that intended program results were achieved,
resources were used consistent with the Service’s mission, resources are protected from waste, fraud, and mismanagement, laws and
regulations are followed, and information is reliable and reported timely. Again, I’m pleased to report that the Service is in compliance and
no such weakness was identified.
The financial and performance data presented in this report are complete and reliable, according with guidance from OMB. Additionally,
we evaluated our financial management system as required by the FFMIA. I conclude that the Service’s financial system substantially
complies with the U.S. Standard general ledger at the transaction level. However, the system does not substantially comply with federal
financial management system requirements regarding information technology security and general controls, and does not substantially
comply with Federal accounting standards relating to condition assessments on stewardship land.
The financial information presented in this report provides the means to manage Service goals and objectives. It also illustrates how the
Service supports the Department of the Interior’s vision for effective stewardship based on communication, consultation, and cooperation,
all in the service of conservation.
The Service is entrusted with the protection, conservation, and recovery of threatened and endangered species, migratory birds, some
marine mammals, inter-jurisdictional and other fisheries and their habitats, stewardship of the National Wildlife Refuge System, and assists
foreign governments with their conservation efforts. Additionally, we oversee federal assistance programs to states for sport fish restoration
and wildlife restoration which distribute hundreds of millions of dollars from excise taxes on fishing and hunting equipment to state
wildlife agencies. We accept these responsibilities with optimism and resolve. As we meet the inspiring challenges of the future, we pursue
our mission in the most efficient and effective manner to meet our responsibilities as stewards of the public trust.
Steven A. Williams
November 1, 2004
I. The United States Fish and Wildlife Service 7
I. The United States Fish and Wildlife Service
Communities and individuals throughout the United States (U.S.) have a strong commitment to fish and wildlife resources. Many
communities realize substantial economic benefits from tourism and visitors that come to enjoy fish and wildlife. Hunting and
fishing remain strong components of community culture all along the Nation’s great river systems. As an asset of tremendous
environmental, recreational, and economic importance, this Nation’s fish and wildlife resources represent a vital part of our
natural heritage, one that is facing increasing pressures. For this reason, the mission of the Service grows continuously more
complex and critical.
I. The United States Fish and Wildlife Service 8
A. Mission and Organization
The Service’s mission is working with others to conserve, protect and enhance fish, wildlife, plants, and their habitats for the
continuing benefit of the American people.
Mission The Service is the principal Federal agency responsible for conserving, protecting and
enhancing fish, wildlife, plants, and their habitats for the continuing benefit of the
American people. The Service manages the 91-million-acre National Wildlife Refuge
System (NWRS), which encompasses 544 National Wildlife Refuges (NWR), thousands
of small wetlands, and other special management areas. It also operates 69 National Fish
Hatcheries, 64 fishery resource offices, and 81 ecological services field stations. The
agency enforces Federal wildlife laws, administers the Endangered Species Act, manages
migratory bird populations, restores nationally significant fisheries, conserves and restores
wildlife habitat such as wetlands, and helps foreign governments with their conservation
efforts. It also oversees the Federal Aid program that distributes hundreds of millions of
dollars in excise taxes on fishing and hunting equipment to State fish and wildlife
agencies.
The Service has the privilege of being the primary agency responsible for the protection,
conservation, and renewal of these resources for this and future generations. We accept
this responsibility and challenge with optimism and resolve to pass along to future
generations of stewards a fish and wildlife resource heritage that is stronger than when it
was entrusted to us.
The Service employs approximately 10,000 permanent and temporary staff and is
supported by citizens volunteering approximately 1.4 million hours. Although the Service
is headquartered in Washington, D.C., over 90% of the workforce is located in
communities across the Nation at over 700 field stations supported by seven regional
offices. As a result of our involvement at the community level, the Service is continuously
focused on building and maintaining relationships with a broad array of stakeholders,
including the states, tribes, community groups, and other organizations.
I. The United States Fish and Wildlife Service 9
Organization As shown in the accompanying organization chart, the Directorate of the Service is
comprised of the Director, two Deputy Directors, ten Assistant Directors, and one Chief of
Law Enforcement, all located in Washington, D.C., and seven Regional Directors, located
throughout the U.S. Service headquarters offices are located in Washington, D.C. and
Arlington, Virginia, with field units in Denver, Colorado, and Shepherdstown, West
Virginia.
Regional Offices are located throughout the U.S. Region 1, located in Portland, Oregon,
serves California, Hawaii, Idaho, Nevada, Oregon, and Washington, as well as the Trust
Territories of the Pacific. (Region 1 also includes the California/Nevada Operations
Office.) Region 2, located in Albuquerque, New Mexico, serves Arizona, New Mexico,
Oklahoma, and Texas. Region 3, located in Ft. Snelling, Minnesota, serves Indiana,
Illinois, Iowa, Michigan, Minnesota, Missouri, Ohio, and Wisconsin. Region 4, located in
Atlanta, Georgia, serves Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana,
Mississippi, North Carolina, South Carolina, and Tennessee, as well as Puerto Rico and the
Virgin Islands. Region 5, located in Hadley, Massachusetts, serves Connecticut, Delaware,
Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, Virginia, Vermont, West Virginia, and the District of Columbia. Region 6,
located in Denver, Colorado, serves Kansas, Montana, North Dakota, South Dakota,
Nebraska, Colorado, Utah, and Wyoming. Region 7, located in Anchorage, Alaska serves
the entire State of Alaska.
In the Department of the Interior (DOI), the Service’s Director reports to the Assistant
Secretary for Fish and Wildlife and Parks and has direct line authority over Service
headquarters and the seven regional offices. Assistant Directors provide policy, program
management and administrative support to the Director. Regional Directors guide policy
and program implementation through their field structures and coordinate activities with
Service partners.
Chapter I. The United States Fish and Wildlife Service 10
B. Organizational Chart
Assistant Director
Wildlife and Sport
Fish Restoration
Programs
Director
Deputy Directors
Assistant Director
National Wildlife
Refuge System
Assistant Director
Migratory Birds
Assistant Director
Fisheries &
Habitat
Conservation
Assistant Director
Endangered
Species
Assistant Director
International
Affairs
Chief
Law Enforcement
Assistant Director
External Affairs
Assistant Director
Budget, Planning
and Human
Resources
Assistant Director
Business
Management &
Operations
Assistant Director
Information Resources
and Technology
Management (CIO)
Division of
Federal
Assistance
Division of
Natural
Resources
Division of Realty
Division of
Conservation,
Planning and
Policy
Division of Visitor
Services and
Communication
Division of
Migratory Bird
Management
Division of Bird
Habitat
Conservation
Division of
Engineering
Division of
Contracting &
Facilities
Management
Division of
Financial
Management
Division of
Economics
Division of Safety
and Health
Division of
Congressional &
Legislative Affairs
Division of Public
Affairs
National
Conservation
Training Center
Native American
Liaison
Division of
Conservation
Partnerships
Division of
Fish & Wildlife
Management &
Habitat Restoration
Division o the
National Fish
Hatchery System
Division of
Federal Program
Activities
Division of
Environmental
Quality
Division of
Information Resources
and Technology
Management
Division of
Human
Resources
Division of
Budget
Division of Policy
& Directives
Management
Planning &
Evaluation Staff
Division of Law
Enforcement
Operations
Regional Special
Agents-in-Charge
Regions 1-7
Clarke R. Bavin
National
Forensics
Laboratory
Division of
Technical & Field
Support
Division of
Conservation and
Classification
Division of
Consultation, Habitat
Conservation Plans,
Recovery & State
Grants
Division of
Partnership and
Outreach
Division of
Management
Authority
Division of
Scientific
Authority
Division of
International
Conservation
Regional Director
Region 1
Portland, OR
California Nevada
Operations
Manager
Sacramento, CA
Regional Director
Region 6
Denver, CO
Regional Director
Region 2
Albuquerque, NM
Regional Director
Region 7
Anchorage, AK
Regional Director
Region 5
Hadley, MA
Regional Director
Region 3
Fort Snelling, MN
Regional Director
Region 4
Atlanta, GA
II. Management’s Discussion and Analysis 11
II. Management’s Discussion and Analysis
The following areas are addressed in the Management’s Discussion and Analysis:
A. Mission Goals and Performance
B. Management Controls and Legal Compliance
C. Financial Highlights
D. Limitations of Financial Statements
E. Analysis of Financial Statements
II. Management’s Discussion and Analysis 12
A. Mission Goals and Performance
DOI has developed a Strategic Plan for FY 2003 - 2008 that encompasses the missions and
goals of its eight bureaus and the DOI Offices (http://www.doi.gov/ppp/stratplanfy2003_2008).
The plan is organized around the DOI’s principal mission areas:
• Resource Protection
• Resource Use
• Recreation
• Serving Communities
• Management Excellence
The Service is entrusted with the protection, conservation, and recovery of threatened and
endangered species, migratory birds, some marine mammals, inter-jurisdictional and other
fisheries and their habitats, and stewardship of NWRS. As such, the Service will significantly
contribute to the successful achievement of the DOI’s mission goals for Resource Protection,
Recreation, Serving Communities, and Management Excellence while supporting Resource Use
through a collaborative environmental consultation effort.
The following information delineates Strategic Plan goal attainment information for FY 2004,
and provides explanations where appropriate for analysis and discussion.
II. Management’s Discussion and Analysis 13
Mission Goal 1 - Resource
Protection
Resource Protection/Improve Health of Watersheds, Landscapes, and Marine Resources
that are DOI Managed or Influenced in a Manner Consistent with Obligations Regarding
the Allocation and Use of Water/Achieve Watershed and Landscape Goals Through
Voluntary Partnerships
The Service estimated that 403,072 acres of wetlands or uplands would be restored or
protected in FY 2004. Estimates reveal 318,070 acres were restored or protected,
therefore, the target was not met. Estimates are based on prior year’s performance trend
data that is subject to change. For example, because the reporting programs are voluntary
programs, exact estimates of landowner interest by habitat type are not possible. Also,
because the estimates are based on the prior year’s performance, they may not be
achievable if landowner interest varies from year to year.
Resource Protection/Sustain Biological Communities on DOI Managed or Influenced
Lands and Waters in a Manner Consistent with Obligations Regarding the Allocation and
Use of Water
Based on estimates, the Service set a FY 2004 target of stabilizing or improving the
population status of 347 (39%) of the 894 Federally-listed threatened or endangered
species listed for a decade or more. Current estimates are that 339 (38%) of these species
were stabilized or improved and thus this target was met*. In meeting this target for FY
2004, the role of uncontrollable natural events (hurricanes and droughts) that may affect a
species’ population status and pose new threats became noteworthy for future estimates.
Additionally, the Service set a target to prevent listing 4 (2%) of the 256 candidate species
as a result of conservation actions or agreements. This target was not met, but
conservation actions or agreements did prevent listing 3 species. The complex and
voluntary nature of establishing and implementing candidate agreements adds to the
difficulties in accomplishing the target. For example, the candidate agreement for the
California golden trout was not signed until just before the end of FY 2004, leaving no
time to make listing decisions. The Service expects to complete these tasks in FY 2005.
Resource Protection/Sustain Biological Communities on DOI Managed or Influenced
Lands and Waters Consistent with Obligations Regarding the Allocation and Use of
Water
The Service set a FY 2004 target to restore or enhance 3,969,495 acres consistent with
management documents, program objectives, and consistent with substantive and
procedural requirements of state and Federal water law. An estimated 3,365,558 acres
(85%) of the target was attained. The FY 2004 target was not met due to several
unplanned events. In FY 2004, about 400,000 acres underwent prescribed fires and an
additional 400,000 acres was targeted for water level management at Okefenokee NWR.
Thus, some of the acreage targeted for restoration in FY 2004 was contained in these
areas and, therefore, could not be restored or enhanced.
* The DOI’s guidance and specifications for the performance section of bureau FY 2004
annual reports considers targets to be “met” when final or preliminary data indicates that
performance will be at or within 5% of the target.
Mission Goal 2 - Resource
Use
Although Resource Use is only tangentially applicable to the activities performed by the
Service and the DOI Strategic Plan does not contain an applicable performance measure,
the Service does contribute through a collaborative environmental consultation effort.
These consultation activities contribute to identifying environment issues and potential
mitigation strategies. Service costs in this mission goal are related to consultation work
performed for other parties. Approximately 2% or $31 million of the Service’s
appropriated funding is directed to these efforts. This activity is funded by Congressional
appropriation, not reimbursable agreements, but is similar to reimbursable agreements in
that there are no meaningful measures relating to the activity other than workload type
measures.
II. Management’s Discussion and Analysis 14
Mission Goal 3 - Recreation Recreation/Provide for a Quality Recreation Experience, Including Access, and
Enjoyment of Natural and Cultural Resources on DOI Managed and Partnered Lands and
Waters
The Service set targets for accomplishment in the following three intermediate
performance measures:
Community Partnerships: The Service set a FY 2004 target to maintain 273 of 665
recreation sites (41%) through community partnerships. These are groups formally
engaged (through Memorandums of Understanding, Memorandums of Agreement, or
General Agreements) in helping the Service achieve its mission. The 311 community
partnerships established in FY 2004 exceeded our targeted goal by 14%. This was
due in part by the method of collecting data, which was refined throughout FY 2004.
Future targets will be based on the number of new friends groups established in any
one FY.
Facility Condition Index (FCI): The Service uses the FCI, a standard measure of the
physical condition for facilities, to estimate its deferred maintenance needs. The FCI
is the ratio of estimated deferred maintenance needs to the estimates of replacing
facilities at today’s costs. The Service set the FCI target for FY 2004 at .181 for
refuge recreational facilities. It is used to provide information to support the
intermediate measure of achieving a condition rating of fair or better for NWRS
recreational facilities (docks, boat launches, kiosks, observation decks, campground
board walks, and picnic areas). Our FCI target was not met as the ratio was .262 at
2004 FY end. With condition assessments only about one-half completed and
replacement costs being refined, the numerical basis for the index is expected to
fluctuate in the future (the Required Supplementary Information (RSI) section of this
report provides information on the Service’s overall facilities maintenance needs).
Facilitated Programs: The Service set a FY 2004 target for refuge staff (paid
employees, volunteers, and cooperating association employees) to offer facilitated
refuge interpretation or educational programs to 1,315,984 refuge visitors. This target
was exceeded, as 16,354,000 visitors were offered facilitated programs. The initial
estimate was based on on-site interpretive and education programs only. However,
the DOI strategic plan template for this measure greatly expanded coverage this year
to include off-site interpretive programs, visitor centers, contact stations, and special
events.
Mission Goal 4 - Serving
Communities
Protect Lives and Property/Intermediate Strategy 1, Improve Fire Management
The Service set a FY 2004 target of limiting land on refuges burned by unplanned and
unwanted wildland fires to 259,963 acres. These fires include those burning outside the
parameters defined in land use or fire management plans. This target was not met with
1,922,035 acres burned. Although the targeted total number of acres was not met, all areas
of the country except Alaska met this goal. Out of a total of 1,922,035 burned acres,
46,058 acres (2%) were burned in the lower 48 states and 1,875,977 acres (98%) were
burned in Alaska, where fire activity was severe and most fires are managed under a
limited suppression strategy. The Service did exceptionally well in restricting burned acres
where a risk to people, structures, or communities was a concern.
Mission Goal 5 -
Management Excellence
Management Excellence
The Service set a FY 2004 target of 1,303,240 volunteer hours and exceeded it by 7% for
a total of 1,398,953 hours. With Service employees working side-by-side with volunteers
on every level, the Service protects, conserves, and restores our nation’s fish, wildlife,
plants, and their habitat.
II. Management’s Discussion and Analysis 15
Data Verification The Service is committed to ensuring that those who use the Service’s reported
performance information to make decisions can do so with the confidence that our data is
reliable and valid. The Service has made significant progress in developing the essential
processes that support data verification methods used by the major program areas in
determining data quality. For example, to ensure standardized data definitions, the Service
has worked closely with the Department in developing performance measure definition
templates for all DOI Strategic Plan performance measures. All goals and measures are
developed and reviewed by Service officials and staff from the field through the
headquarters level. Each goal is measurable and clear, and was developed to have a direct
bearing on the mission activity in which it is categorized.
Data sources are clearly identified. The Service utilizes a number of databases for
collecting and reporting performance data. For example, the Ecological Services program
maintains the Environmental Conservation Online System, Threatened and Endangered
Species System, and Habitat Information Tracking System. The Fisheries Program uses its
Fishery Information System (including the Fisheries Operational Needs System) to track
performance. The Refuge Program utilizes a series of national databases that collect and
provide crucial performance information including: Refuge Management Information
System, Refuge Comprehensive Accomplishment Reporting System, and Refuge
Operating Needs System. The Migratory Bird Management Program utilizes a national
database to enter and track its performance information.
All data is aggregated at the regional level. The region programs offices have designated
responsible officials who certify the data is accurate and that proper procedures are
followed during each reporting period. The collection staffs in the field offices are highly-skilled
and well-trained biologists. The assistant regional directors at each regional office
have the ultimate responsibility for verifying the data accuracy. The data accuracy is again
checked at the National Headquarters Office in the offices of the assistant directors for the
various reporting programs.
While we strive to collect and report accurate data, data limitations exist for some
performance measures. Some performance data are collected by outside sources. For
example, Breeding Bird Survey data is provided by the U.S. Geological Survey -
Biological Research Division. The National Audubon Christmas Bird Count is collected
by volunteers. The International Affairs Program relies on obtaining plant and animal
species performance data from foreign sources.
Data Validity The goals directly measure the results that the organization hopes to achieve in the
delivery of the core components of the mission. Data collected is relevant and presents an
accurate picture of the performance of the organization toward achieving the goals.
Performance data for goals is obtained by existing data collection processes and is
supported by program information management systems. To a large degree, the Service
must rely on the quality assurance/quality controls in place at the primary data source to
ensure data accuracy.
II. Management’s Discussion and Analysis 16
B. Management Controls and Legal Compliance
The Service is dedicated to maintaining integrity and accountability in all programs and
operations. Service management assesses its systems of management, administrative, and
financial controls to ensure that:
• Programs achieve their intended results
• Resources are used consistent with the Service’s mission
• Resources are protected from waste, fraud, and mismanagement
• Laws and regulations are followed
• Reliable and timely information is maintained, reported, and used for decision
making
The Service assesses the adequacy of its management controls through continuous
monitoring and periodic evaluations, consistent with Office of Management and Budget
Circular A-123 and the Federal Managers’ Financial Integrity Act (FMFIA). Each year,
the Service identifies specific management control assessments planned for the fiscal year.
The results from these internal reviews as well as results in certain final audit reports
issued primarily by the Office of Inspector General and the U.S. General Accounting
Office are considered in the development of the Service’s annual assurance statement on
management controls. The statement also considers information obtained from the
knowledge and experience management has gained from the daily operation of programs
and systems of accounting and administrative controls. The statement informs DOI of the
effectiveness of the Service’s management controls, and includes information about any
pending and new bureau-level material weaknesses and corrective actions.
In FY 2004, management control reviews were conducted in administrative, program, and
information technology areas. No material control weaknesses were identified. Corrective
actions for the non-material control weaknesses are monitored until completion.
II. Management’s Discussion and Analysis 17
C. Financial Highlights
Service Financial Performance In FY 2004 the Service continued to improve the quality and timeliness of its financial
information. Through enhancements to reporting processes and the expanded use of web-based
technology, the Service processes payments more efficiently and as a result,
improved its rate of compliance with departmental and Federal payment processing
requirements. The Service’s challenge remains to process financial and related information
received from over 700 field offices in a timely and efficient manner.
Improving Financial
Transaction Processes and
Results
In FY 2004, the Service continued to maintain strong transaction process performance
levels. For example, our accounts receivable delinquency rate (excluding debts referred to
the Department of the Treasury for action) was only about 3% as of the end of FY 2004.
As required by the Department, Service offices conducted risk assessments for improper
payments by reviewing programs and activities according to departmental guidance. After
performing risk identification and risk analysis, offices determined annual dollar volumes,
annual estimated improper payment amounts, percentages of improper payments to dollar
volumes, and risk ratings. No program in the Service was rated as a high risk for making
significant improper payments.
In FY 2004, the Service paid its vendors on time 98% of the time, paying only $29,605 in
late payment penalties on over $480 million of total payments to vendors. During the same
period, 95% of the Service’s payments to vendors were accomplished through the
Electronic Funds Transfer (EFT). In FY 2003, we also achieved an on time payment rate
of 98% and EFT payment rate of 95%.
Cardholders and approving officials are regularly advised of their respective
responsibilities under the purchase card program. Failure to comply with charge card
policy can create an environment open for delinquent account balances or unauthorized
use of Service funds. In FY 2004, Service employee travel charge card accounts
delinquent more than 60 days represented less than 1% of the total Service cardholders,
which is less than the Federal Government FY 2004 rate of 3%.
II. Management’s Discussion and Analysis 18
Improving the Accuracy and
Timeliness of Financial
Information
The President’s Management Agenda, Governmentwide Initiatives, Improved Financial
Performance section, challenges agencies to provide accurate and timely financial
information. During FY 2004, the Service implemented several new policies and
processes designed to improve the accuracy and timelines of its financial reporting and
information.
• The audit report on the Service’s FY 2003 financial statements identified a
material weakness relating to financial reporting of its real property. In response,
the Service established a team to evaluate the organizational structure, policies and
procedures relating to our real property management activities. Based on the
results of the evaluation, the team prepared a comprehensive manual providing
detailed technical guidance to facilitate accurate processing and reporting of real
property data. This guidance was implemented during FY 2004, resulting in more
accurate and timely real property information. The FY 2003 audit finding was
lowered to a reportable condition in the FY 2004 audit report.
• The Service implemented a Central Contractor Registration (CCR) database of
contractors approved to conduct business with the Federal Government. The CCR
helps make the payment process more efficient and reduces the number of
erroneous payments. It also serves to increase the visibility of vendors, and
establishes a common source of vendor data for the Federal Government. As of the
end of FY 2004, 82% of the vendors used by the Service were registered in the
CCR.
• The Service implemented a web-based questionnaire to assess the presence and use
of internal controls over key financial processes performed throughout the Service.
Each of the Service's offices performing financial functions will complete the
questionnaire at least once every four years. In 2004, 196 or approximately 27% of
the Servicewide eligible stations completed the questionnaire, exceeding the
annual goal of 25%. Data from these surveys will be used as a tool to strengthen
guidance or initiate timely corrective actions for problems discovered as a result of
survey responses.
• As part of the President’s Management Agenda, the Office of Management and
Budget (OMB) has established accelerated due dates for completing performance
and accountability reports. Effective FY 2004, the DOI’s Performance and
Accountability Report is due 45 days from the end of the FY. The Service
instituted comprehensive quarterly financial statements throughout FY 2004 to
meet the mandatory accelerated reporting schedule.
Managing the Sport Fish
Restoration Account (SFRA)
The Service’s Sport Fish Restoration Account (SFRA) makes grants available to states to
restore, conserve, manage, protect, and enhance sport fish resources and coastal wetlands,
and also to enhance public use and benefits from sport fish resources. The source of
funding for the SFRA is the Aquatic Resources Trust Fund (ARTF), which receives
revenue through excise taxes levied on the sale of fishing tackle and equipment, certain
motorboat and small engine gasoline, and interest earned on invested trust funds. In
addition to the SFRA, the ARTF funds the Boating Safety Account, which provides
funding for boating safety programs conducted by the U.S. Coast Guard, and also coastal
wetlands initiatives conducted by the Corps of Engineers. Title 26 of the U.S. Code,
Section 9602 designates the Department of the Treasury as manager of the ARTF, with
overall responsibility for the fund’s accounting and investment activities. The ARTF is
presented on the Service’s financial statements in accordance with the requirements of
Statement of Federal Financial Accounting Standards (SFFAS) Number 7, Accounting for
Revenue and Other Financing Sources, and Statement of Federal Financial Accounting
Concepts (SFFAC) Number 2, Entity and Display, which requires trust funds that finance
multiple programs to be reported by the entity with the preponderance of fund activity.
II. Management’s Discussion and Analysis 19
D. Limitations of the Financial Statements
The Principal Financial Statements have been prepared to report the financial position and
results of operations of the Service, pursuant to the requirements of 31.U.S.C. 3515(b).
The statements have been prepared from the books and records of the Service in
accordance with prescribed formats. The statements are different from the financial reports
used to monitor and control budgetary resources, which are prepared from the same books
and records. The financial statements should be read with the realization that they are a
component of the U.S. Government, a sovereign entity, and that liabilities reported in the
financial statements cannot be liquidated without legislation providing resources to do so.
II. Management’s Discussion and Analysis 20
E. Analysis of Financial Statements
The Service produces audited annual financial statements that summarize its financial
activity and financial position. The Principal Financial Statements include:
1. Consolidated Balance Sheet
2. Consolidated Statement of Net Cost
3. Consolidated Statement of Changes in Net Position
4. Combined Statement of Budgetary Resources
5. Consolidated Statement of Financing
The notes accompanying the financial statements provide additional detail and context
concerning the information presented in the financial statements. Two other statements,
the Consolidating Statement of Net Cost and the Combining Statement of Budgetary
Resources provide additional detail of information presented in the financial statements.
Budgetary Resources The Service obtains most of its funding from enacted appropriations. In FY 2004, the
Service’s appropriations budget was approximately $2.10 billion. The total budgetary
resources available for use in FY 2004 are approximately $2.86 billion. This includes
budget authority, unobligated balances as of the beginning of the year, net transfers of
budget authority, and spending authority from offsetting collections. In FY 2003, the
Service’s appropriation budget was $2.09 billion, with total budgetary resources available
for use amounting to about $2.84 billion.
Earned Revenue In addition to budgetary appropriations, the Service obtains funding to support its
programs from reimbursable agreements, where the Service receives compensation for
services it provides to other Federal agencies and public entities. The Service also earns
revenue from fees and collections relating to its various programs. In FY 2004, the Service
recognized approximately $152 million in earned revenue compared with $173 million in
FY 2003.
Expenses The Service’s cost of operations before earned revenue in FY 2004 was approximately
$2.20 billion. The table below provides the Service’s analysis of expenses by mission
goal. (The Service updated its strategic plan for FY 2004 and established new mission
goals. As a result, FY 2003 expenses are not available by the new mission goals.)
Expenses by Mission Goals
FY 2004
(dollars in thousands)
Mission Goal
Amount of
FY 2004 Expenses
Percentage of
FY 2004 Expenses
Resource Protection $ 1,558 70.8 %
Resource Use 31 1.4
Recreation 477 21.7
Serving Communities 136 6.1
Total $ 2,202 100.0 %
II. Management’s Discussion and Analysis 21
Assets The largest portion of reported assets, approximately 42.8%, is Treasury securities held by
the Service representing invested amounts from the Federal Aid in Wildlife Restoration
Fund (approximately $363 million), and ARTF (approximately $1.45 billion). As of
September 30, 2003, approximately $453 million was held in the Wildlife Restoration
Fund, and about $1.42 billion was included in the ARTF, representing about 46.2% of
Service Assets. Although the Department of the Treasury is responsible by statute for the
balances in the ARTF, it is presented on the Service’s financial statements in accordance
with the requirements of the SFFAC Number 2, Entity and Display.
The Service’s Fund Balance with the Department of the Treasury, as of September 30,
2004, is approximately $1.48 billion, or approximately 34.9% of Service assets. As of
September 30, 2003, the Service’s fund balance with the Department of the Treasury was
$1.28 billion, or 31.2% of total assets. The portion of this balance available to the Service
at any point in time depends on the terms of the Service’s appropriation language, and
other applicable statutes.
The Service’s investment in Property, Plant and Equipment (PP&E), net of accumulated
depreciation, is approximately $900 million, or approximately 21.3% of Service assets. As
of September 30, 2003, the Service’s net PP&E was $862 million, also representing about
21.3% of Service assets. The Service does not report stewardship property, such as NWRs
and waterfowl production areas in its financial statements. The Service also excludes
heritage assets from its reports, such as land, buildings, and structures recognized for their
ecological, cultural, historical, and scientific importance. Stewardship and heritage assets
are not recognized as having an identifiable financial value that can be quantified on
financial statements. In accordance with the requirements of the SFFAS Number 6,
Property, Plant and Equipment, purchases of these assets are considered expenses of the
accounting period they are acquired.
Liabilities and Net Position The largest portion of Service liabilities, approximately $421 million as of September 30,
2004, consists of amounts owed to the U.S. Coast Guard and the Corps of Engineers from
the ARTF. As of September 30, 2003, the ARTF liability to these agencies amounted to
$390 million. These liabilities are reported in Service financial statements in accordance
with the requirements of SFFAC Number 2, Entity and Display.
The Service has approximately $141 million in unfunded liabilities to the public, which
cannot be paid until funds are appropriated by Congress in future periods. These liabilities
consist primarily of unfunded annual leave and the Service’s actuarial Federal Employees
Compensation Act (FECA) liability. They also include environmental cleanup liabilities,
representing the future costs of remediating hazardous waste, and landfills existing on
Service lands. In FY 2004, unfunded liabilities include estimated costs to repair damage to
NWRs, National Fish Hatcheries, and other Service facilities caused by hurricanes and
storms. The following table summarizes the Service’s unfunded liabilities to the public.
Unfunded Liabilities to the Public
as of September 30, 2004 and 2003
(dollars in millions)
Unfunded Liabilities September 30, 2004 September 30, 2003
Federal Employees Compensation Act $ 59 $ 62
Unfunded Annual Leave 48 46
Environmental Cleanup 13 12
Other 21 2
Total $ 141 $ 122
II. Management’s Discussion and Analysis 22
The Service’s Net Position consists of two components:
1. Unexpended Appropriations
2. Cumulative Results of Operations
The Unexpended Appropriations amount reflects spending authority made available to the
Service by Congressional appropriation that the Service has not yet used. The Cumulative
Results of Operations amount reflects the net results of the Service’s operations over time.
The Service’s Net Position as of September 30, 2004 is approximately $3.54 billion, of
which approximately $502 million is unexpended appropriations and $3.04 billion is
cumulative results of operations. As of September 30, 2003, the Service’s net position was
$3.41 billion, with $498 million in unexpended appropriations and $2.91 billion in
cumulative results of operations.
III. U.S. Fish and Wildlife Service Financial Statements 23
III. U.S. Fish and Wildlife Service Financial Statements
The Service Financial Statements section covers the following areas:
A. Principal Financial Statements
B. Notes to Principal Financial Statements
C. Required Supplementary Information (RSI)
D. Required Supplementary Stewardship Information (RSSI)
III. U.S. Fish and Wildlife Service Financial Statements 24
A. Principal Financial Statements
U.S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidated Balance Sheet
as of September 30, 2004 and 2003
(dollars in thousands)
2004 2003
ASSETS (Note 2)
Intragovernmental Assets:
Fund Balance with Treasury (Note 3) $ 1,479,492 $ 1,276,656
Investments, Net (Notes 4 and 11) 1,816,233 1,870,014
Accounts and Interest Receivable, Net (Note 5) 26,410 21,596
Other
Advances and Prepayments 1,301 755
Total Intragovernmental Assets 3,323,436 3,169,021
Cash (Note 3) 107 116
Accounts and Interest Receivable, Net (Note 5) 10,700 10,832
General Property, Plant and Equipment, Net (Note 6) 900,160 862,436
Other
Advances and Prepayments 286 271
TOTAL ASSETS $ 4,234,689 $ 4,042,676
LIABILITIES (Note 8)
Intragovernmental Liabilities:
Accounts Payable $ 5,810 $ 12,191
Other
Accrued Payroll and Benefits 17,904 16,927
Advances and Deferred Revenue 680 681
Deferred Credits 9 6
Aquatic Resources Trust Fund Amounts Due to Others (Note 11) 420,896 389,762
Judgment Fund 15 0
Other Liabilities 1,926 1,926
Total Intragovernmental Liabilities 447,240 421,493
Public Liabilities:
Accounts Payable 80,068 69,159
Federal Employees Compensation Act Liability 58,821 62,153
Environmental Cleanup Costs (Note 8) 12,874 12,352
Other
Accrued Payroll and Benefits 66,586 57,614
Advances and Deferred Revenue 5,949 6,292
Deferred Credits 408 1,430
Contingent Liabilities (Note 8) 12 0
Other Liabilities 21,247 21
Total Public Liabilities 245,965 209,021
TOTAL LIABILITIES 693,205 630,514
Commitments and Contingencies (Notes 8 and 9)
Net Position
Unexpended Appropriations 501,981 498,236
Cumulative Results of Operations 3,039,503 2,913,926
TOTAL NET POSITION 3,541,484 3,412,162
TOTAL LIABILITIES AND NET POSITION $ 4,234,689 $ 4,042,676
The accompanying notes are an integral part of these financial statements
III. U.S. Fish and Wildlife Service Financial Statements 25
U. S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidated Statement of Net Cost
for the years ended September 30, 2004 and 2003
(dollars in thousands)
Resource
Protection
Resource
Use Recreation
Serving
Communities
2004
Total
Cost - Services Provided to the Public $ 1,475,285 $ 30,446 $ 462,784 $ 132,974 $ 2,101,489
Revenue Earned from the Public 45,716 414 8,021 673 54,824
Net Cost of Services to the Public 1,429,569 30,032 454,763 132,301 2,046,665
Cost - Services Provided to Federal Agencies 82,642 109 14,432 3,160 100,343
Revenue Earned from Federal Agencies 80,403 107 13,972 3,070 97,552
Net Cost of Services Provided to Federal Agencies 2,239 2 460 90 2,791
Net Cost of Operations (Note 14) $ 1,431,808 $ 30,034 $ 455,223 $ 132,391 $ 2,049,456
Sustainability
of Fish and
Wildlife Population
Habitat
Conservation
Public Use
and
Enjoyment
Partnerships
in Natural
Resources
2003
Total
Cost - Services Provided to the Public $ 599,277 $ 726,876 $ 173,326 $ 560,119 $ 2,059,598
Revenue Earned from the Public 16,492 34,553 4,330 17 55,392
Net Cost of Services to the Public 582,785 692,323 168,996 560,102 2,004,206
Cost - Services Provided to Federal Agencies 53,692 57,511 10,234 29 121,466
Revenue Earned from Federal Agencies 51,934 56,153 9,857 29 117,973
Net Cost of Services Provided to Federal Agencies 1,758 1,358 377 0 3,493
Net Cost of Operations (Note 14) $ 584,543 $ 693,681 $ 169,373 $ 560,102 $ 2,007,699
The accompanying notes are an integral part of these financial statements
III. U.S. Fish and Wildlife Service Financial Statements 26
U. S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidated Statement of Changes in Net Position
for the years ended September 30, 2004 and 2003
(dollars in thousands)
2004 2003
UNEXPENDED APPROPRIATIONS
Beginning Balance $ 498,236 $ 478,161
Budgetary Financing Sources
Appropriations Received, General Funds 1,121,014 1,072,465
Appropriations Transferred In/Out 94,718 84,346
Appropriations Used (1,198,544) (1,130,272)
Other Adjustments (13,443) (6,464)
Total Budgetary - Financing Sources 3,745 20,075
Ending Balance – Unexpended Appropriations $ 501,981 $ 498,236
CUMULATIVE RESULTS OF OPERATIONS
Beginning Balance $ 2,913,926 $ 2,880,832
Budgetary Financing Sources
Appropriations Used 1,198,544 1,130,272
Royalties Retained 6,456 2,909
Transfers In/Out without Reimbursement 165,382 143,939
Non-Exchange Revenue:
Tax Revenue 717,364 659,217
Donations and Forfeitures of Cash and Cash Equivalents 4,840 4,163
Other Non-Exchange Revenue 27,202 49,747
Other Budgetary Financing Sources 169 1,909
Other Financing Sources
Imputed Financing from Costs Absorbed by Others (Note 10) 50,488 44,277
Transfers In/Out without Reimbursement 4,588 4,360
Total Financing Sources 2,175,033 2,040,793
Net Cost of Operations (2,049,456) (2,007,699)
Ending Balance - Cumulative Results of Operations $ 3,039,503 $ 2,913,926
The accompanying notes are an integral part of these financial statements
III. U.S. Fish and Wildlife Service Financial Statements 27
U. S. Department of the Interior
U.S. Fish and Wildlife Service
Combined Statement of Budgetary Resources
for the years ended September 30, 2004 and 2003
(dollars in thousands)
2004 2003
Budgetary Resources:
Budget Authority:
Appropriations Received $ 2,103,220 $ 2,089,609
Net Transfers, Current Year Authority (94,440) (99,275)
Unobligated Balance:
Beginning of Fiscal Year 570,853 730,861
Net Transfers, Unobligated Balance, Actual 15,296 (4,700)
Spending Authority from Offsetting Collections:
Earned
Collected 139,063 138,815
Receivable from Federal Sources (3,631) 2,713
Change in Unfilled Customer Orders
Advance Received (344) (32,119)
Without Advance from Federal Sources 70,883 (5,537)
Subtotal: Spending Authority from Offsetting Collections 205,971 103,872
Recoveries of Prior Year Obligations 79,302 75,403
Permanently Not Available (Note 12) (16,323) (58,458)
Total Budgetary Resources $ 2,863,879 $ 2,837,312
Status of Budgetary Resources:
Obligations Incurred:
Direct $ 1,996,205 $ 2,140,323
Reimbursable 203,822 126,136
Total Obligations Incurred 2,200,027 2,266,459
Unobligated Balance:
Apportioned 660,255 569,286
Unobligated Balance not Available 3,597 1,567
Total Status of Budgetary Resources $ 2,863,879 $ 2,837,312
Relationship of Obligations to Outlays:
Obligations Incurred $ 2,200,027 $ 2,266,459
Obligated Balance, Net, Beginning of Fiscal Year 1,211,727 1,066,316
Obligated Balance, Net, End of Fiscal Year:
Accounts Receivable 27,493 31,124
Unfilled Customer Orders from Federal Sources 116,298 45,414
Undelivered Orders (1,256,824) (1,194,780)
Accounts Payable (106,575) (93,485)
Less: Spending Authority Adjustments (146,554) (72,579)
Outlays:
Disbursements 2,045,592 2,048,469
Collections (138,719) (106,697)
Subtotal: Outlays 1,906,873 1,941,772
Less: Offsetting Receipts (61,170) (62,743)
Net Outlays $ 1,845,703 $ 1,879,029
The accompanying notes are an integral part of these financial statements
III. U.S. Fish and Wildlife Service Financial Statements 28
U. S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidated Statement of Financing
for the years ended September 30, 2004 and 2003
(dollars in thousands)
2004 2003
Resources Used to Finance Activities:
Budgetary Resources Obligated:
Obligations Incurred $ 2,200,027 $ 2,266,459
Less: Spending Authority from Offsetting Collections/Adjustments (285,274) (179,276)
Obligations Net of Offsetting Collections and Adjustments 1,914,753 2,087,183
Less: Offsetting Receipts (61,170) (62,743)
Net Obligations 1,853,583 2,024,440
Other Resources:
Transfers In/Out Without Reimbursement 4,588 4,360
Imputed Financing From Costs Absorbed by Others (Note 10) 50,488 44,277
Net Other Resources Used to Finance Activities 55,076 48,637
Total Resources Used to Finance Activities 1,908,659 2,073,077
Resources Used to Finance Items Not Part of the Net Cost of Operations:
Change in Budgetary Resources Obligated for Goods, Services, and
Benefits Ordered but Not Yet Provided 7,932 (194,831)
Resources That Fund Expenses Recognized in Prior Periods (43) (50)
Budgetary Offsetting Collections and Receipts That Do Not Affect Net Cost of Operations:
Offsetting Receipts Not Part of the Net Cost of Operations 27,594 28,169
Resources That Finance the Acquisition of Assets (80,258) (51,706)
Other Resources or Adjustments to Net Obligated Resources That Do Not Affect Net Cost of Operations 10,958 2,231
Total Resources Used to Finance Items Not Part of the Net Cost of Operations (33,817) (216,187)
Total Resources Used to Finance the Net Cost of Operations 1,874,842 1,856,890
Components of Net Cost of Operations That Will Not Require or Generate Resources in the Current Period:
Components Requiring or Generating Resources in Future Periods:
Increase (Decrease) in Annual Leave Liability 2,336 3,343
Increase (Decrease) in Environmental and Disposal Liability 522 (2,843)
Other 18,259 5,264
Total Components of Net Cost of Operations That Will Require or Generate Resources in Future Periods 21,117 5,764
Components Not Requiring or Generating Resources:
Depreciation and Amortization 42,534 34,872
Components of Net Cost of Operations Related to Transfer Accounts Where
Budget Amounts Are Reported by Other Federal Entities (Note 13) 110,901 110,400
Other 62 (227)
Total Components of Net Cost of Operations That Will Not Require or Generate Resources 153,497 145,045
Total Components of Net Cost of Operations That Will Not Require or Generate Resources in the
Current Period
174,614 150,809
Net Cost of Operations $ 2,049,456 $ 2,007,699
The accompanying notes are an integral part of these financial statements
III. U.S. Fish and Wildlife Service Financial Statements 29
B. Notes to Principal Financial Statements
Note 1 - Summary of Significant Accounting Principles
A. Reporting Entity The Service is a Bureau within DOI, a cabinet-level agency of the Federal Government’s
Executive Branch. The Service is responsible for conserving, protecting, and enhancing
fish, wildlife and plants, and their habitats for the continuing benefit of the American
people. Authority over money or other budget authority made available to the Service, is
vested in the Service’s Director, who is responsible for administrative oversight and policy
direction of the Service. Accounts are maintained which restrict the use of money (or other
budget authority) for use consistent with the purposes and the time period authorized.
These accounts also provide assurance that obligations do not exceed authorized amounts.
B. Basis of Accounting and
Presentation
These financial statements have been prepared to report the financial position, net cost of
operations, changes in net position, budgetary resources, and financing of the Service as
required by the Chief Financial Officers Act of 1990, as amended by the Reports
Consolidation Act of 2000, and the Government Management Reform Act of 1994. The
financial statements have been prepared from the Service’s books and records in
accordance with the form and content for entity financial statements specified by OMB in
the OMB Bulletin 01-09, dated September 25, 2001, as required for FY 2004 and 2003.
Furthermore, the financial statements have been prepared in accordance with the Service’s
accounting policies summarized in this note.
The accounting records are maintained and these financial statements have been prepared
in accordance with generally accepted accounting principles (GAAP), as prescribed by the
Federal Accounting Standards Advisory Board (FASAB), recognized by the American
Institute of Certified Public Accountants (AICPA) as the entity to establish GAAP for the
Federal Government under Rule 203 of the AICPA’s Code of Professional Conduct. The
financial statements reflect both accrual and budgetary accounting transactions. Under the
accrual accounting method, revenue is recognized when earned and expenses are
recognized when a liability is incurred, without regard to receipt or payment of cash.
Budgetary accounting principles, by contrast, are designed to recognize the obligation of
funds according to legal requirements, which may be prior to the occurrence of accrual-based
transactions. The recognition of budgetary accounting transactions facilitates
compliance with legal constraints and controls over the use of Federal funds. The accounts
are maintained in accordance with the Department of the Treasury’s U.S. Standard
General Ledger.
The financial statements have been prepared from the books and records of the Service
except for certain amounts relating to Aquatic Resources Trust Fund (ARTF), which were
provided by the Department of the Treasury. Title 26 of the U.S. Code, Section 9602
designates the Department of the Treasury as manager of the ARTF, with overall
responsibility for the fund’s accounting and investment activities. Although the Secretary
of the Department of the Treasury is responsible by statute for the balances in the ARTF,
it is presented on the Service’s financial statements in accordance with the requirements of
the Statement of Federal Financial Accounting Concepts (SFFAC) Number 2, Entity and
Display. SFFAC Number 2 requires trust funds that finance multiple programs to be
reported by the entity with the preponderance of fund activity. This is also consistent with
OMB guidance for financial reporting, which cites SFFAS Number 7, Paragraph 87, as
applying to the ARTF. In FY 2004 the SFRA received approximately 79% of the ARTF
transfers.
III. U.S. Fish and Wildlife Service Financial Statements 30
The financial statements should be read with the realization that they are a component of
the U.S. Government, a sovereign entity. Liabilities cannot be liquidated without
legislation that provides resources and legal authority to do so. Intragovernmental assets
and liabilities arise from transactions with other Federal agencies.
The Service maintains accounts in three separate budgetary categories:
1. Resources management
2. Grant programs
3. Other funds
1. Resource Management
This category includes expenditure accounts arising from Congressional appropriations
or other authorizations to spend general revenue. The principal resource management
accounts are:
a. Resource Management, Operating
b. Resource Management, Federal Infrastructure Improvement
2. Grant Programs
The Service administers 14 budgetary accounts for grant programs established under
specific trust agreements and statutes. The major categories of grant programs are:
a. Sport Fish Restoration
b. Federal Aid in Wildlife Restoration
c. Other grant programs:
• Wildlife Conservation (two budgetary accounts)
• North American Wetlands Conservation
• State Wildlife Grants
• Tribal Wildlife Grants
• Landowner Incentive
• Cooperative Endangered Species Conservation Fund
• Private Stewardship Grants
• Multinational Species Conservation Fund (four budgetary accounts)
3. Other Funds
The Service also administers various other budgetary accounts, including:
a. Miscellaneous Permanent Appropriations - These funds are receipt funds
earmarked by law for a specific purpose, and do not require appropriation
language to use the receipts. These funds include:
• Operations/Maintenance - Quarters
• Lahontan Valley and Pyramid Lake Fish and Wildlife Fund
• Other Miscellaneous Appropriations
b. Construction
c. Land Acquisition
d. Contributed Fund Account
e. Commercial Salmon Fishery Capacity Reduction
f. Migratory Bird Conservation Account
g. Recreation Fee Demonstration Program
III. U.S. Fish and Wildlife Service Financial Statements 31
C. Fund Balance with the
Department of the Treasury
and Cash
The Service maintains all cash accounts with the Department of the Treasury except for
the imprest fund accounts. The funds with the Department of the Treasury include
appropriated, special receipt, and trust funds, which are available to pay current liabilities
and outstanding obligations. Cash receipts and disbursements of the Service are processed
by the Department of the Treasury, and the Service’s accounts are regularly reconciled
with those of the Department of the Treasury.
D. Investments in Treasury
Securities
The Service invests funds from the Federal Aid in Wildlife Restoration Fund (Treasury
Symbol 14X5029), the Multinational Species Conservation Fund (Treasury Symbol
14X1652), and the ARTF (Treasury Symbol 20X8147) in Federal Government Securities
that include marketable Treasury Securities and non-marketable par value or non-marketable
market-based securities issued by the Federal Investment Branch of the Bureau
of Public Debt. Par value securities are special issue bonds or certificates of indebtedness
that bear interest determined by legislation or the Department of the Treasury. Market-based
securities are Treasury securities that are not traded on any securities exchange, but
mirror the prices of marketable securities with similar terms. The Service intends to hold
these investments until maturity. Investments are valued at cost and adjusted for
amortization of premiums and discounts, if applicable. The premiums and discounts are
recognized as adjustments to interest income, utilizing the straight-line method. No
provision is made for unrealized gains or losses on these securities. Interest on investments
is accrued as it is earned.
The investments reported by the Service for ARTF (Treasury Symbol 20X8147) are
managed by the Department of the Treasury (see below, Note 1E Interest, and Taxes
Receivable). Although the Service has advisory authority for ARTF investment decisions,
the Department of the Treasury has legal responsibility for investing ARTF funds.
Consistent with authorizing legislation and the Department of the Treasury fiscal
investment policies, the Secretary of the Department of the Treasury invests such portion
of the ARTF balance deemed by the program agencies not necessary to meet current
withdrawals to cover program and related costs as defined by law. Such investments are in
non-marketable par value or non-marketable market-based securities as authorized by
legislation and are issued and redeemed by the Federal Investment Branch of the Bureau
of Public Debt, in the Department of the Treasury. These securities are held in the name of
the Secretary of the U.S. Department of the Treasury for the ARTF and interest in
investments is accrued as it is earned. The premiums and discounts are recognized as
adjustments to interest income, utilizing the effective interest method. Although funds
collected and deposited in the ARTF in any one fiscal year are available for investment
during the same fiscal year collected, they are not available for obligation that same year.
Thus, the use of such funds collected from a prior fiscal year is restricted until the
following fiscal year. Note 4 provides additional information on Service and ARTF
investments.
E. Accounts, Interest, and
Taxes Receivable
Receivables represent amounts owed to the Service by other Federal agencies and the
public, (with the exception of amounts owed to the ARTF and reported by the Service),
and include accounts receivable, interest receivable and taxes receivable. Accounts
receivable primarily arise from the provision of goods and services or from the levy of
fines and penalties resulting from the Service’s regulatory responsibilities. Taxes
receivable consist entirely of tax receipts owed to the ARTF, which serves as the funding
source for the SFRA, one of two trust funds maintained by the Service. Interest receivable
consists primarily of amounts earned but not yet received from Service investments and
ARTF investments reported by the Service. An allowance for doubtful accounts is
maintained to reflect uncollectible receivables from the public. The allowance amount is
estimated based on an average of prior year write-offs and an analysis of outstanding
accounts receivable. Federal accounts receivable are considered to be fully collectible.
III. U.S. Fish and Wildlife Service Financial Statements 32
F. Operating Materials and
Supplies
Operating materials and supplies consist of items such as lumber, sand, gravel, and other
items purchased in large quantities which will be consumed in future operations.
Operating materials and supplies are accounted for based on the purchase method. Under
this method, operating materials and supplies are expensed when purchased.
G. Property, Plant and
Equipment 1. General Property, Plant and Equipment (PP&E)
General PP&E consists of that property which is used in Service operations. General
PP&E includes buildings, structures, facilities and equipment used in the operation of
wildlife refuges, fish hatcheries, wildlife and fishery research centers, waterfowl
production areas, and administrative sites. In FY 2004, the Service made a prospective
change in the real property capitalization threshold from $50,000 to $100,000.
Capitalized buildings and structures have a cumulative acquisition cost $100,000 or
more. Buildings and structures are reported in the financial statements based on legal
ownership. Buildings are comprised of facilities owned by the Service, such as houses,
garages, shops, schools, laboratories, and other buildings. Structures and facilities
owned by the Service include powerhouses and pumping plants, structural and general
service facilities systems (e.g., drainage, plumbing, sewer, ventilating, water or heating
systems), ground and site improvements (e.g., roads and roadways, fences, parking
areas, sidewalks, sprinkler systems, yard drainage systems, or yard lighting systems),
bridges and trestles, dams and dikes, waterways and wells. Capitalized costs include
materials, labor, and overhead costs incurred during construction, attorney and architect
fees, and building permits. Permanent improvements to stewardship land, including
earthen structures, such as canals, dikes, levees, and dirt roads, are not capitalized.
Depreciation of buildings and other structures is recorded using the straight-line
method based on an estimated useful life of 10 to 40 years. Note 6 provides additional
information on the Service’s general PP&E.
Investments in improvements to buildings, structures and facilities leased by the
Service are capitalized if they exceed the capitalization threshold for real property.
Leasehold improvements are depreciated using the straight-line method over their
estimated useful life or the term of lease, whichever is less.
Capitalized equipment consists of those assets, other than buildings or other structures,
which have an estimated useful life of two or more years and an initial acquisition cost
of $15,000 or more. In FY 2004, the Service made a prospective change in the
capitalization threshold for capitalized equipment from $25,000 to $15,000.
Depreciation of equipment is recorded using the straight-line method based on the
estimated useful life of the respective assets of 5 to 20 years.
2. Construction Work in Progress (CWIP)
CWIP is used for the accumulation of the cost of construction or major renovation of
real property during the construction period. Costs are transferred out of CWIP when
they meet the criteria for capitalization.
3. Stewardship Property, Plant and Equipment (PP&E)
The SFFAS No. 6, Accounting for Property, Plant and Equipment, established various
categories to stewardship PP&E including stewardship land and heritage assets. A
portion of the Service’s stewardship lands have been reserved for wildlife refuges while
the remainder is managed for multiple use. Heritage assets are assets with historical,
cultural, or natural significance. In accordance with Federal accounting standards, the
Service assigns no financial value to the stewardship lands or heritage assets it
administers in its financial statements. Acquisition costs for stewardship assets, and any
permanent improvement to these assets are expensed in the accounting period incurred.
The Required Supplementary Stewardship Information (RSSI) section of this report
provides additional information concerning stewardship land and heritage assets.
III. U.S. Fish and Wildlife Service Financial Statements 33
4. Internal Use Software
Internal Use Software is capitalized at cost if the acquisition cost is $100,000 or more.
For commercial off-the-shelf software, the capitalized costs include the amount paid to
the vendor for the software; for contractor-developed software, it includes the amount
paid to a contractor to design, program, install, and implement software. Capitalized
costs for internally developed software include the full cost (direct and indirect)
incurred during the software development stage. The estimated useful life for
calculating amortization of software is 2 to 5 years using the straight-line method.
5. Leases
The Service leases certain PP&E for its operations. All of the Service’s leases are
considered operating leases in which the Service does not assume the risks of
ownership of the PP&E. Note 9 provides additional information on the Service’s
operating leases.
H. Seized and Forfeited
Property Property seized by or forfeited to the Service consists primarily of wildlife and wildlife
products. A smaller number of non-wildlife property items, such as guns, ammunition
or forensic evidence, is also seized by or forfeited to the Service. The Service is
responsible for safeguarding seized and forfeited property from the time of seizure
through the final disposition of the property. Methods of disposing of seized and
forfeited property include retaining the property in the Service for educational
purposes, transferring the property to other Federal entities, returning the property to
the owner, or disposing of the property through destruction, sale, donation or other
methods authorized by law. Property for which a legal market exists is reported at
appraised value or at values received at auction. Property that cannot be legally sold
(e.g., all or parts of migratory birds, bald and golden eagles, endangered or threatened
species, marine mammals, and species listed on Appendix I to the Convention on
International Trade in Endangered Species) is classified as “non-marketable” and has
no legal value. Note 7 provides additional information on seized and forfeited property.
I. Liabilities and Contingencies
A liability for Federal accounting purposes is a probable and measurable outflow or
other sacrifice of resources as a result of past transactions or events. Intragovernmental
liabilities arise from transactions with other Federal agencies. Liabilities Not Covered
by Budgetary Resources result from the receipt of goods or services, or the occurrence
of events, for which budgetary resources are not available. A liability cannot be paid
absent appropriation of funds by Congress, and there is no certainty that such budgetary
resources will be provided. The Federal Government, acting in its sovereign capacity,
can abrogate those liabilities that arise for reasons other than through contracts.
Liabilities of the ARTF are the amount of funds resulting from the original budget
authority for a fiscal year less the draw down of cash transferred during that same fiscal
year.
Contingent liabilities relate to conditions, situations, or circumstances where the
existence or amount of the liability cannot be determined with certainty pending the
outcome of future events. The Service recognizes contingent liabilities when a future
outflow or other sacrifice of resources is both measurable and probable.
III. U.S. Fish and Wildlife Service Financial Statements 34
J. Revenue and Other Financing
Sources
1. Appropriations
The Service receives the majority of the funding needed to support its programs
through appropriations. The Service receives annual, multi-year, and no-year
appropriations that may be used within statutory limits for operating expenses and
capital expenditures. Additional amounts are obtained through reimbursements for
services provided to public entities and other Federal agencies in accordance with
reimbursable agreements. Receipts from reimbursable agreements are recognized as
revenue when earned, and may be used to offset the cost of operations, including
indirect costs. The Combined Statement of Budgetary Resources presents information
about the resources appropriated to the Service.
2. Exchange and Non-exchange Revenue
The Service classifies revenue as either exchange or non-exchange revenue. Exchange
revenue derives from transactions in which both the Service and the other party receive
value. This revenue is presented in the Consolidated Statement of Net Cost. The non-exchange
revenue results from donations to the government and from the government’s
sovereign right to demand payment, including fines for violation of environmental
laws. This revenue is not considered as reductions of the cost of the Service’s
operations and is reported on the Consolidated Statement of Changes in Net Position.
Significant funding is made available to support Service programs from tax revenue,
which is recognized when earned. This tax revenue emanates from excise taxes,
collected from manufacturers of equipment used in hunting, fishing, sport shooting on
ranges, and on motorboat fuels, which are deposited into either the Wildlife Restoration
Fund or the ARTF.
3. Imputed Financing Sources
In certain instances, operating costs of the Service are paid from funds appropriated to
other Federal agencies. As an example, the Office of Personnel Management (OPM),
by law, pays certain costs of retirement programs; and certain legal judgments against
the Service are paid from the Judgment Fund maintained by the Department of the
Treasury. When costs identifiable to the Service and directly attributable to the
Service’s operations are paid by other agencies, the Service recognizes these amounts
as operating expenses and recognizes the imputed financing source on the Consolidated
Statement of Changes in Net Position to indicate the funding of Service operations by
other Federal agencies.
ARTF information is presented in the Service’s financial statements in accordance with
the requirements of SFFAC Number 2, Entity and Display. The sources of funding for
the ARTF include excise taxes levied on the sale of fishing tackle and equipment,
certain motorboat and small engine gasoline, and interest earned on invested trust
funds. These funds are used to make grants available to states for support projects that
restore, conserve, manage, protect, and enhance sport fish resources and coastal
wetlands and projects that provide for public use and benefit from sport fish resources.
The ARTF also provides funds for boating safety programs conducted by the U.S.
Coast Guard and costal wetlands initiatives conducted by the U.S. Army Corps of
Engineers. The Appropriations Act of 1951 authorized amounts equal to revenue
credited during the year to be used in the subsequent fiscal year. This inflow is
recorded as permanent appropriations to remain available until expended.
III. U.S. Fish and Wildlife Service Financial Statements 35
4. Deferred Revenue
Unearned revenue is recorded as deferred revenue until earned.
K. Personnel Compensation and
Benefits 1. Annual, Sick and Other Leave
Annual leave is accrued as it is earned. The accrual is reduced as leave is taken. Each
year, the balance in the accrued annual leave account is adjusted to reflect current pay
rates. To the extent current or prior year appropriations are not available to fund
annual leave, future funding sources will be used. Sick leave and other types of non-vested
leave are expensed as taken. Accrued benefits are included in
Intragovernmental Liabilities as accrued payroll and benefits.
2. Federal Employees Worker’s Compensation Program
The Federal Employees Compensation Act (FECA) authorizes income and medical
cost protection to covered Federal civilian employees injured on the job, to
employees who have incurred work-related occupational diseases, and to
beneficiaries of employees whose deaths are attributable to job-related injuries or
occupational diseases. The FECA program is administered by the U.S. Department of
Labor. Initially, FECA benefit claims for DOI employees are paid by the Department
of Labor, and subsequently reimbursed by the Interior. The Department of Labor is
responsible for calculating FECA liability of future compensation benefits for all
Federal agencies. The resulting liability is then distributed by the Department of
Labor to each benefiting agency.
The FECA liability consists of two components. The first component is based on
actual claims paid by the Department of Labor but not yet reimbursed by the Service.
The second component is the estimated liability for future benefit payments as a
result of past events. This liability includes death, disability, medical, and
miscellaneous costs.
3. Federal Employees Group Life Insurance Program (FEGLI)
The OPM administers the FEGLI program. The Service recognizes identified costs
for partial funding of insurance costs paid for by OPM as Service expenses. The
funding for insurance costs is reflected as imputed financing sources on the Statement
of Changes in Net Position.
Most Service employees are entitled to participate in the FEGLI program.
Participating employees can obtain various options of term life insurance. OPM
administers this program and is responsible for reporting FEGLI liabilities on its
financial statements.
4. Retirement Programs
The OPM administers the Federal retirement programs. The Service recognizes
identified costs for partial funding of retirement benefits paid for by OPM as Service
expenses. The funding for these retirement costs is reflected as imputed financing
sources on the Statement of Changes in Net Position.
Service employees participate in either the Civil Service Retirement System (CSRS)
or the Federal Employees Retirement System (FERS) defined benefit pension plans.
FERS went into effect January 1, 1987. FERS and Social Security automatically
cover most employees hired after December 31, 1983. Employees hired prior to
January 1, 1984 could elect either FERS and Social Security, or remain in CSRS.
III. U.S. Fish and Wildlife Service Financial Statements 36
FERS offers a savings plan to which the Service automatically contributes 1% of the
employee’s basic pay to the tax deferred Thrift Savings Plan and matches employee
contributions up to an additional 4% of basic pay. Employees could contribute up to
14% of their gross earnings to FERS for the year ended September 30, 2004, or 13%
of their gross earnings to the year ended September 2003. Employees could contribute
up to 9% of their gross earnings to CSRS for the year ended September 30, 2004, or
8% of their gross earnings for the year ended September 2003. CSRS employees
receive no matching contribution from the Service.
The Service is not responsible for and does not report CSRS or FERS assets,
accumulated plan benefits, or liabilities applicable to its employees. OPM, which
administers the plans, is responsible for, and reports these amounts.
L. Use of Estimates The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those estimates.
M. Statement of Financing The Statement of Financing is used to reconcile budgetary data with proprietary data. It
articulates the relationship between net obligations derived from an entity’s budgetary
accounts and the net cost of operations derived from the entity’s proprietary accounts by
identifying and explaining key differences between two numbers.
III. U.S. Fish and Wildlife Service Financial Statements 37
Note 2 - Assets Analysis
The assets reported in the financial statements include unrestricted entity assets,
restricted entity assets, and non-entity assets. Unrestricted entity assets are currently
available for use by the Service. Restricted entity assets are not currently available for
use by the Service, pending authorization by Congress. Non-entity assets are held by the
Service or the ARTF with no authority for use by the Service, and will be transferred to
other agencies at a future date. They include assets to be transferred to the Job Corps
program and also ARTF amounts scheduled for transfer to the U.S. Coast Guard and the
Corps of Engineers. Non-entity assets also include estimates of future transfers of
current ARTF funds to these two agencies. The following chart summarizes the
Service’s unrestricted entity, restricted entity, and non-entity assets:
Assets Analysis
as of September 30, 2004 and 2003
(dollars in thousands)
ENTITY
UNRESTRICTED
ENTITY
RESTRICTED NON-ENTITY
2004
TOTAL
ASSETS
Intragovernmental Assets:
Fund Balance with Treasury $ 1,454,550 $ 24,941 $ 1 $ 1,479,492
Investments, Net 631,241 640,576 544,416 1,816,233
Accounts and Interest Receivable, Net 18,283 8,127 0 26,410
Other - Advances and Prepayments 1,301 0 0 1,301
Total Intragovernmental Assets 2,105,375 673,644 544,417 3,323,436
Cash 107 0 0 107
Accounts and Interest Receivable, Net 10,700 0 0 10,700
General Property, Plant and Equipment, Net 900,160 0 0 900,160
Other - Advances and Prepayments 286 0 0 286
TOTAL ASSETS $ 3,016,628 $ 673,644 $ 544,417 $ 4,234,689
ENTITY
UNRESTRICTED
ENTITY
RESTRICTED NON-ENTITY
2003
TOTAL
ASSETS
Intragovernmental Assets:
Fund Balance with Treasury $ 1,254,583 $ 22,073 $ 0 $ 1,276,656
Investments, Net 733,847 622,522 513,645 1,870,014
Accounts and Interest Receivable, Net 21,323 273 0 21,596
Other - Advances and Prepayments 755 0 0 755
Total Intragovernmental Assets 2,010,508 644,868 513,645 3,169,021
Cash 116 0 0 116
Accounts and Interest Receivable, Net 10,832 0 0 10,832
General Property, Plant and Equipment, Net 862,436 0 0 862,436
Other - Advances and Prepayments 271 0 0 271
TOTAL ASSETS $ 2,884,163 $ 644,868 $ 513,645 $ 4,042,676
III. U.S. Fish and Wildlife Service Financial Statements 38
Note 3 - Fund Balance with Treasury and Cash
The Service’s fund balance with the Department of the Treasury is as follows:
Fund Balance with Treasury
as of September 30, 2004 and 2003
(dollars in thousands)
Fund Balance with Treasury by Fund Type
2004 2003
General Fund $ 494,046 $ 477,336
Special Fund 932,007 768,531
Trust Fund 53,022 29,353
Other Fund Types 417 1,436
Total $ 1,479,492 $ 1,276,656
Status of Fund Balance with Treasury
2004 2003
Unobligated Balance
Available $ 284,569 $ 282,089
Unavailable 242,403 215,904
Obligated Balance Not Yet Disbursed 952,520 778,663
Total Status of Fund Balances with Treasury $ 1,479,492 $ 1,276,656
Service cash as of September 30, 2004 and 2003 is $107,000 and $116,000 respectively.
Service Cash
as of September 30, 2004 and 2003
(dollars in thousands)
2004 2003
Imprest Fund $ 107 $ 116
Total Cash $ 107 $ 116
III. U.S. Fish and Wildlife Service Financial Statements 39
Note 4 - Investments, Net
Investments in non-marketable market-based Treasury securities consist of various bills
purchased through the Federal Investment Branch of the Bureau of Public Debt. The invested
funds consist of excise tax receipts from the Federal Aid in Wildlife Restoration Fund (Treasury
Symbol 14X5029), ARTF (Treasury Symbol 20X8147), and the Multi-National Species
Conservation Fund (Treasury Symbol 14X1652). The Service’s outstanding investments in
Treasury securities are as follows:
Investments, Net
as of September 30, 2004 and 2003
(dollars in thousands)
Investment Type Cost
Amortized
(Premium)/
Discount
Investments,
Net
Market Value
2004
U.S. Treasury Securities
14X5029 Non-Marketable, Market-Based $ 363,832 $ (1,073) $ 362,759 $ 363,614
14X1652 Non-Marketable, Market-Based 0 0 0 0
Total Entity 363,832 (1,073) 362,759 363,614
ARTF 20X8147 Non-Marketable, Market-Based 1,455,389 (4,045) 1,451,344 1,446,897
Total Non-Entity 1,455,389 (4,045) 1,451,344 1,446,897
Total U.S. Treasury Securities 1,819,221 (5,118) 1,814,103 1,810,511
Accrued Interest 2,130 0 2,130 0
Total Investments $ 1,821,351 $ (5,118) $ 1,816,233 $ 1,810,511
Investment Type Cost
Amortized
(Premium)/
Discount
Investments,
Net
Market Value
2003
U.S. Treasury Securities
14X5029 Non-Marketable, Market-Based $ 453,752 $ (1,083) $ 452,669 $ 453,944
14X1652 Non-Marketable, Market-Based 1,054 0 1,054 1,054
Total Entity 454,807 (1,083) 453,723 454,998
ARTF 20X8147 Non-Marketable, Market-Based 1,418,171 (2,359) 1,415,812 1,416,278
Total Non-Entity 1,418,171 (2,359) 1,415,812 1,416,278
Total U.S. Treasury Securities 1,872,978 (3,443) 1,869,535 1,871,276
Accrued Interest 479 0 479 0
Total Investments $ 1,873,457 $ (3,443) $ 1,870,014 $ 1,871,276
III. U.S. Fish and Wildlife Service Financial Statements 40
Note 5 - Accounts, Interest, and Taxes Receivable, Net
Accounts and interest receivable consist of amounts owed the Service by other Federal
agencies and the public and are recognized primarily when the Service performs
reimbursable services or sells goods. Accounts receivable also includes those funds,
including taxes receivable, to be deposited in the ARTF. Interest receivable consists of
monies earned but not yet received and primarily derive from investments disclosed in
Note 4. Accounts and Interest Receivable consist of the following:
Accounts Receivable
as of September 30, 2004 and 2003
(dollars in thousands)
Accounts Receivable from Federal Agencies
2004 2003
Accounts Receivable from Federal Agencies
Current $ 25,321 $ 20,053
1 - 180 Days Past Due 116 628
181 - 365 Days Past Due 56 78
Over 1 Year Past Due 173 208
Total Billed Accounts Receivable - Federal 25,666 20,967
Unbilled Accounts Receivable 744 629
Total Accounts Receivable - Federal $ 26,410 $ 21,596
Accounts Receivable from the Public
2004 2003
Accounts Receivable from the Public
Current $ 10,775 $ 10,841
1 - 180 Days Past Due 37 66
181 - 365 Days Past Due 34 21
Over 1 Year Past Due 66 361
Total Billed Accounts Receivable - Public 10,912 11,289
Unbilled Accounts Receivable 7 12
Total Accounts Receivable - Public 10,919 11,301
Allowance for Doubtful Accounts (219) (469)
Total Accounts Receivable - Public Net of Allowance $ 10,700 $ 10,832
Change in Allowance for Bad Debts - Public 2004 2003
Allowance for Doubtful Accounts, Beginning $ 469 $ 544
Deletions (250) (75)
Allowance for Bad Debts - Public $ 219 $ 469
III. U.S. Fish and Wildlife Service Financial Statements 41
Note 6 - General Property, Plant and Equipment (PP&E), Net
Net General PP&E owned by the Service consists of the following:
General Property, Plant and Equipment (PP&E), Net
as of September 30, 2004 and 2003
(dollars in thousands)
Acquisition Accumulated Net
Cost Depreciation 2004
Land and Land Improvements $ 10,571 $ 0 $ 10,571
Buildings 575,766 149,479 426,287
Structures and Facilities 474,776 203,037 271,739
Leasehold Improvements 2,585 209 2,376
Construction in Progress - General 67,806 0 67,806
Equipment, Vehicles, and Aircraft 284,389 164,268 120,121
Internal Use Software:
In Use 1,454 194 1,260
Total Property, Plant, and Equipment $ 1,417,347 $ 517,187 $ 900,160
Acquisition Accumulated Net
Cost Depreciation 2003
Land and Land Improvements $ 10,570 $ 0 $ 10,570
Buildings 501,563 140,161 361,402
Structures and Facilities 448,735 189,111 259,624
Leasehold Improvements 1,926 0 1,926
Construction in Progress - General 114,420 0 114,420
Equipment, Vehicles, and Aircraft 263,861 150,436 113,425
Internal Use Software:
In Development 1,069 0 1,069
Total Property, Plant, and Equipment $ 1,342,144 $ 479,708 $ 862,436
III. U.S. Fish and Wildlife Service Financial Statements 42
Note 7 - Seized and Forfeited Property
Seized and forfeited property is recorded in case files maintained in the Service’s Law
Enforcement Management Information System (LEMIS 2000). The Service does not
assign a financial value to, or recognize for purposes of its financial statements, property
seized by or forfeited to the Service that cannot be sold due to legal restrictions. Such
property is typically wildlife or wildlife parts that can be donated to schools, aquaria,
museums, or zoos for educational or scientific purposes or destroyed. Seized or forfeited
property that can be sold legally is valued by individual agents based on their best
professional estimate, through declarations, or through evaluating fair market value.
Values of property seized by or forfeited to the Service reported below are not accrued on
the financial statements as the property held by the Service cannot be legally sold and,
therefore, does not have marketable value. Seized and forfeited property cases and
estimated values, including additions and dispositions, are as follows:
Seized and Forfeited Property
for the years ended September 30, 2004 and 2003
(dollars in thousands)
Balance
10/01/2003
Additions Dispositions Balance
09/30/2004
# Cases Market
Value
# Cases Market
Value
# Cases Market
Value
# Cases Market
Value
Seized Property
Wildlife 1,014 $ 2,676 1,919 $ 2,464 1,819 $ 2,234 1,114 $ 2,906
Non-Wildlife 201 202 314 136 304 35 211 303
Forfeited Property
Wildlife 1,004 2,671 1,310 2,093 1,211 1,865 1,103 2,899
Non-Wildlife 200 202 271 127 263 26 208 303
Balance
10/01/2002
Additions Dispositions Balance
09/30/2003
# Cases Market
Value
# Cases Market
Value
# Cases Market
Value
# Cases Market
Value
Seized Property
Wildlife 935 $ 4,700 1,640 $ 1,102 1,561 $ 3,126 1,014 $ 2,676
Non-Wildlife 150 24 181 186 130 8 201 202
Forfeited Property
Wildlife 928 4,698 930 856 854 2,883 1,004 2,671
Non-Wildlife 150 24 131 176 81 0 200 202
III. U.S. Fish and Wildlife Service Financial Statements 43
Note 8 - Liabilities Analysis
Liabilities are claims against the Service by other Federal and non-Federal entities for
measurable past transactions or events. Certain types of liabilities are not covered by
budgetary resources and require Congressional action before budgetary resources can be
provided. Service liabilities are detailed below:
Liabilities Analysis
as of September 30, 2004 and 2003
(dollars in thousands)
Covered by Budgetary
Resources
Not Covered by Budgetary
Resources
Current Non-Current Current Non-Current 2004 Total
Intragovernmental Liabilities:
Accounts Payable $ 5,810 $ 0 $ 0 $ 0 $ 5,810
Other
Accrued Payroll and Benefits 4,571 0 4,570 8,763 17,904
Advances and Deferred Revenue 680 0 0 0 680
Deferred Credits 0 0 9 0 9
Aquatic Resources Amounts Due to Others 0 0 0 420,896 420,896
Judgment Fund 0 0 0 15 15
Other Liabilities 0 0 0 1,926 1,926
Total Intragovernmental Liabilities 11,061 0 4,579 431,600 447,240
Public Liabilities:
Accounts Payable 80,068 0 0 0 80,068
Federal Employees Compensation Act Liability 0 0 0 58,821 58,821
Environmental Cleanup Costs 0 0 0 12,874 12,874
Other
Accrued Payroll and Benefits 18,596 0 0 47,990 66,586
Advances and Deferred Revenue 5,949 0 0 0 5,949
Deferred Credits 0 0 0 408 408
Contingent Liabilities 0 0 0 12 12
Other Liabilities 0 0 21,247 0 21,247
Total Public Liabilities 104,613 0 21,247 120,105 245,965
Total Liabilities $ 115,674 $ 0 $ 25,826 $ 551,705 $ 693,205
Covered by Budgetary
Resources
Not Covered by Budgetary
Resources
Current Non-Current Current Non-Current 2003 Total
Intragovernmental Liabilities:
Accounts Payable $ 12,191 $ 0 $ 0 $ 0 $ 12,191
Other
Accrued Payroll and Benefits 3,970 0 4,457 8,500 16,927
Advances and Deferred Revenue 681 0 0 0 681
Deferred Credits 0 0 6 0 6
Aquatic Resources Amounts Due to Others 0 0 0 389,762 389,762
Other Liabilities 0 0 0 1,926 1,926
Total Intragovernmental Liabilities 16,842 0 4,463 400,188 421,493
Public Liabilities:
Accounts Payable 69,159 0 0 0 69,159
Federal Employees Compensation Act Liability 0 0 0 62,153 62,153
Environmental Cleanup Costs 0 0 0 12,352 12,352
Other
Accrued Payroll and Benefits 11,959 0 0 45,655 57,614
Advances and Deferred Revenue 6,292 0 0 0 6,292
Deferred Credits 0 0 0 1,430 1,430
Contingent Liabilities 0 0 0 0 0
Other Liabilities 0 0 0 21 21
Total Public Liabilities 87,410 0 0 121,611 209,021
Total Liabilities $ 104,252 $ 0 $ 4,463 $ 521,799 $ 630,514
III. U.S. Fish and Wildlife Service Financial Statements 44
Environmental Cleanup
Liabilities
The Service operates its environmental cleanup program in accordance with the
requirements of the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response, Compensation, and Liability Act and cleanup regulations
established by the Environmental Protection Agency. Environmental liabilities for the
Service are associated with the costs of remediating hazardous waste and landfills existing
within units of the NWRS and the National Fish Hatcheries System (NFHS) and for which
the government is legally liable. In accordance with accounting principles generally
accepted in the U.S., the Service has recorded in its financial statements a liability for
remediating contamination on Service land of $13 million and $12 million as of
September 30, 2004 and 2003, respectively. The Service believes that a reasonable
estimate of the additional potential liabilities for remediation efforts ranges between $0
and $98 million as of September 30, 2004. The estimated range of additional potential
liabilities as of September 30, 2003 was between $0 and $93 million.
The cost range represents the total estimated cost that may be borne by the Service for
cleanup on Service lands, based on information available to the Service at this time.
Liability estimates are based on accounting definitions of liability, as distinct from legal
liability. As such, these estimates may not be construed as an indication that the Service
would admit or would be determined to be legally liable for any or all of such costs. These
cases include sites on lands obtained by the Service through donation, acquisition or
transfer from other Federal agencies. Cost estimates are based on site investigations and
the expected degree and type of contamination probable and reasonably possible at these
sites. Where possible, cost estimates are included for conducting site investigations and for
conducting monitoring actions needed to assess the efficacy of cleanup. The Service’s
methods for estimating these liabilities include quotes from private firms or government
agencies that have worked on the sites, projected planning figures based on related
projects, and best engineering judgment. Changes in cleanup cost estimates are developed
in accordance with departmental policy, which addresses systematic processes for cost
estimating and places added emphasis on development and retention of supporting
documentation. Changes in cleanup cost estimates are based on progress made in, and
revision of, the cleanup plans, assuming current technology, laws, and regulations. There
is not a broad application of any particular inflation or deflation factors to prior estimates.
There are no material changes in total estimated cleanup costs that are due to changes in
law and technology.
Contingent Liabilities There are two claims pending administrative action against the Service for which
payments have been deemed probable and the amount of potential loss is estimated at
$12,000. In accordance with accounting principles generally accepted in the U.S., the
Service has recorded $12,000 as a liability as of September 30, 2004. The Service
estimates a range of potential liabilities for other claims where the likelihood of an
unfavorable outcome is reasonably possible, which is between $51,000 and $4.6 million as
of September 30, 2004. The following tables present accrued and potential liabilities
related to estimated cleanup costs and contingent liabilities:
III. U.S. Fish and Wildlife Service Financial Statements 45
Contingent Liabilities
as of September 30, 2004 and 2003
(dollars in thousands)
Accrued Liabilities
2004 2003
Estimated Cleanup Cost $ 12,874 $ 12,352
Contingent Liabilities 12 0
Total Environmental and Contingent Liabilities - Accrued $ 12,886 $ 12,352
Additional Potential Liabilities
2004 2003
Lower End of
Range
Upper End of
Range
Lower End of
Range
Upper End of
Range
Estimated Cleanup Cost $ 0 $ 97,983 $ 0 $ 93,092
Contingent Liabilities 51 4,600 1,630 2,430
Total Environmental and Contingent Liabilities - Potential $ 51 $ 102,583 $ 1,630 $ 95,522
Liabilities Involving
Government-Related Events
During August and September 2004, hurricanes and other storms caused significant
damage to numerous units of NWRS, NFHS, and other facilities primarily in the
southeastern U.S. Funding for most of the estimated repair costs was included in a
supplemental appropriation (Public Law 108-324) that was enacted October 13, 2004.
Most of the costs are for removal of debris, repairs to permanent land improvements and
other stewardship assets, and repairs to noncapitalized or fully depreciated assets. A
liability of $21 million was established for these costs. Certain capitalized assets were
completely destroyed or affected to such an extent to necessitate adjustment to recorded
values. The Service’s net property, plant and equipment was reduced by less than $2
million to account for destroyed or impaired assets.
III. U.S. Fish and Wildlife Service Financial Statements 46
Note 9 - Operating Leases
Most of the Service’s leased facilities are rented from the General Services Administration
(GSA), which charges rent that is intended to approximate commercial rental rates. The
Service includes the estimated rental payments to GSA in the following table. For
federally owned facilities, the Service either does not execute an agreement with GSA, or
enters into cancelable agreements, some of which do not have a formal lease expiration
date. The Service can vacate these properties after giving 120 to 180 days notice of intent
to vacate; however, the Service normally occupies these properties for an extended period
of time with little variation from year to year. For non-federally owned property an
occupancy agreement is generally executed, according to standard contract principles.
Estimates for real and personal property leases are based on an annual inflation factor of
1.7% for FY 2005 and 1.5% thereafter.
The estimates for personal property represent the cost of leasing GSA vehicles. The terms
for GSA leases frequently exceed one year, although a definite lease period is usually not
specified. For purposes of disclosing future operating payments, GSA personal property
leases are included from 2005 through 2009. The current lease costs are based on the
vehicles leased by the Service from GSA as of September 2004. The Service’s estimates
are based on an annual inflation factor of 1.7% for FY 2005 and 1.5% for FY 2006
through 2009.
The aggregate estimates for the Service’s: (1) future payments due under non-federal or
non-cancelable operating leases; and (2) estimated real property rent payments to GSA
and other Federal entities are as follows:
Future Operating Lease Payments
(dollars in thousands)
Real Property Property Personal
FY Federal Non-Federal Federal Non-Federal Total
2005 $ 46,593 $ 1,136 $ 2,781 $ 0 $ 50,510
2006 44,513 844 2,822 0 48,179
2007 42,593 399 2,865 0 45,857
2008 41,330 279 2,908 0 44,517
2009 36,853 43 2,951 0 39,847
Thereafter 83,683 737 0 0 84,420
Total Future
Lease Payments $ 295,565 $ 3,438 $ 14,327 $ 0 $ 313,330
III. U.S. Fish and Wildlife Service Financial Statements 47
Note 10 - Imputed Financing Sources
Imputed financing sources primarily represent costs that have been incurred by the Service
but budgeted by another entity. The imputed cost of approximately $50 million for the
year ended September 30, 2004 presented in the Service’s accompanying financial
statements reflects the recorded costs (e.g., employee benefit costs) that were financed by
budgetary resources of the OPM. For the year ended September 30, 2003, imputed
financing sources totaled approximately $44 million. The Service recognizes the actuarial
present value of pensions and other retirement benefits for its employees during their
active years of service. Imputed costs also include services that are received by the Service
at less than full cost. The U.S. Department of the Treasury made no Judgment Fund
payments on behalf of the Service in FY 2004 and 2003.
III. U.S. Fish and Wildlife Service Financial Statements 48
Note 11 - Dedicated Collections
The Service’s financial statements reflect balances in three dedicated collections accounts: ARTF,
the Federal Aid in Wildlife Restoration account, and the SFRA.
The ARTF receives funding from excise tax receipts collected from manufacturers of equipment
used in fishing, hunting, and sport shooting, and on motorboat fuels. It provides funding to the
Service’s SFRA, the U.S. Coast Guard Boat Safety Program and the Corps of Engineers Coastal
Wetlands Program. The SFRA is authorized to use the excise tax revenue received to provide
assistance to the 50 States, Puerto Rico, Guam, and the U.S. Virgin Islands, the Northern Mariana
Islands, American Samoa, and the District of Columbia to carry out projects to restore, enhance, and
manage sport fishery resources. Receipts collected into this account are permanently appropriated
for use in the fiscal year following collection. Excise tax revenue distributed to the Service on
behalf of the Coast Guard and Corps of Engineers are immediately transferred out to those entities.
The Federal Aid in Wildlife Restoration Account (the Pittman-Robertson Wildlife Restoration Act)
receives funding from excise taxes on sporting firearms, handguns, ammunition, and archery
equipment. It provides Federal assistance to the 50 States, Puerto Rico, Guam, and the U.S. Virgin
Islands, the Northern Mariana Islands, and American Samoa for projects to restore, enhance, and
manage wildlife resources, and to conduct State hunter education programs. The Act authorizes
receipts for permanent indefinite appropriations to the Service for use in the fiscal year following
collection. Funds not used by the states after two years are reverted to the Service for carrying out
the provisions of the Migratory Bird Conservation Act.
The distribution of funds relating to these accounts represents an inflow of revenue as a result of
intragovernmental transfers. The table below reflects the Service’s summarized information:
Dedicated Collections
as of and for the years ended September 30, 2004 and 2003
(dollars in thousands)
Aquatic
Resources
Trust Fund
Wildlife
Restoration
Sport Fish
Restoration 2004 Total
Aquatic
Resources
Trust Fund
Wildlife
Restoration
Sport Fish
Restoration 2003 Total
ASSETS
Fund Balance with Treasury $ 24,941 $ 120,209 $ 14,255 $ 159,405 $ 22,074 $ 18,099 $ (6,938) $ 33,235
Investments 1,451,344 364,889 0 1,816,233 1,415,812 453,148 0 1,868,960
Accounts Receivable 8,127 0 921,021 929,148 273 1 883,688 883,962
Other Assets 0 107 0 107 0 123 0 123
TOTAL ASSETS $ 1,484,412 $ 485,205 $ 935,276 $ 2,904,893 $ 1,438,159 $ 471,371 $ 876,750 $ 2,786,280
LIABILITIES
Aquatic Resources Amounts Due to FWS $ 920,993 $ 0 $ 0 $ 920,993 $ 883,661 $ 0 $ 0 $ 883,661
Aquatic Resources Amounts Due to Coast Guard 0 0 68,351 68,351 0 0 62,515 62,515
Aquatic Resources Amounts Due to Corps of Engineers 0 0 352,546 352,546 0 0 327,164 327,164
Aquatic Resources Amounts Due to Others 0 0 0 0 83 0 0 83
Accounts Payable 0 14,613 22,991 37,604 0 17,073 22,284 39,357
Other Liabilities 0 781 988 1,769 0 624 1,348 1,972
TOTAL LIABILITIES 920,993 15,394 444,876 1,381,263 883,744 17,697 413,311 1,314,752
TOTAL NET POSITION 563,419 469,811 490,400 1,523,630 554,415 453,674 463,439 1,471,528
TOTAL LIABILITIES AND NET POSITION $ 1,484,412 $ 485,205 $ 935,276 $ 2,904,893 $ 1,438,159 $ 471,371 $ 876,750 $ 2,786,280
CHANGE IN NET POSITION
Net Position, Beginning of Fiscal Year $ 554,415 $ 453,674 $ 463,439 $ 1,471,528 $ 538,979 $ 490,490 $ 462,309 $ 1,491,778
Change in Net Position:
Non-exchange Revenue
Taxes 455,828 238,807 0 694,635 426,377 214,337 0 640,714
Investment Interest and Other 16,551 10,451 177 27,179 40,949 8,745 358 50,052
Transfers In/Out without Reimbursement (463,375) (173) 345,405 (118,143) (451,890) (243) 329,816 (122,317)
Program Expenses 0 (232,948) (318,621) (551,569) 0 (259,655) (329,044) (588,699)
Net Position, End of Fiscal Year $ 563,419 $ 469,811 $ 490,400 $ 1,523,630 $ 554,415 $ 453,674 $ 463,439 $ 1,471,528
III. U.S. Fish and Wildlife Service Financial Statements 49
Note 12 - Combined Statement of Budgetary Resources
Apportionments for the Service fall into OMB Category B, which apportions amounts by
activity, project, or object. Apportionment Categories of Obligations Incurred include:
1. Direct and Reimbursable Obligations Incurred
2. Amounts Apportioned and Exempt from Apportionment
3. Obligations by Apportionment Category
Each of the above categories is presented in the following table:
A. Permanent Indefinite Appropriations
As of September 30, 2004, the Service had 12 permanent indefinite appropriations which are
primarily utilized to administer endangered species and wildlife and sport fish restorations
grants to states and other non-Federal entities, and to fund land acquisition for NWRS. These
funds do not require annual appropriation action by Congress as they are subject to the
authorities of permanent law and are available indefinitely. FY 2004 total budgetary
resources were $950,140,423, which comprise $684,084,489 in obligations incurred and an
available balance of $266,055,934. Comparatively, at the end of FY 2003 total budgetary
resources were about $948,308,893, which comprised approximately $715,854,624 in
obligations incurred and an available balance of about $232,454,269.
Obligations by Apportionment Category
for the years ended September 30, 2004 and 2003
(dollars in thousands)
Apportioned
Not Subject to
Category A Category B Apportionment 2004 Total
Obligations Incurred:
Direct $ 0 $ 1,996,206 $ 0 $ 1,996,206
Reimbursable 0 203,821 0 203,821
Total Obligations Incurred $ 0 $ 2,200,027 $ 0 $ 2,200,027
Apportioned
Not Subject to
Category A Category B Apportionment 2003 Total
Obligations Incurred:
Direct $ 0 $ 2,140,323 $ 0 $ 2,140,323
Reimbursable 0 126,136 0 126,136
Total Obligations Incurred $ 0 $ 2,266,459 $ 0 $ 2,266,459
III. U.S. Fish and Wildlife Service Financial Statements 50
B. Legal Arrangements Affecting Use of Unobligated Balances
The Service’s FY 2004 operating and grant programs were financed and its financial activity
summarized under 9 general fund accounts, 17 special fund accounts, and 2 trust fund
accounts, all with distinct Treasury Fund Symbols. All of the Service’s funding needs are
authorized in a number of appropriation laws, which prescribe a combination of current and
permanent authority. Each of the Service’s funds was appropriated under OMB
apportionment Category B and was subject to annual apportionment. Current authority
includes funding that is legislatively reauthorized each fiscal year, while permanent authority
is issued once and remains in effect in future fiscal years until reauthorized or rescinded. The
majority of the Service’s 28 fund accounts are classified as no-year, which allows the
Service to use its fiscal year-end unobligated resources remaining in these accounts to
execute its operating and grant programs in subsequent fiscal years.
The Service’s operating account is classified as a multiyear appropriation, whose budget
authority is available for two years. The FY 2003/2004 Resource Management appropriation
expired at the end of FY 2004. Expired, not cancelled funds, are resources that are available
for the next 5 fiscal years to settle obligations arising in the year the funds were enacted, but
are not available for new business. These expired resources are reported as “Permanently
Not Available.”
C. Differences Between Amounts Reported in the Statement of Budgetary
Resources and Amounts Reported in the Budget of the U.S. Government
The Statement of Budgetary Resources (SBR) has been prepared to coincide with the
amounts shown in the FY 2005 President’s Budget (Budget of the U.S. Government). The
President’s Budget with the actual FY 2003 amounts was released on February 3, 2004 and
can be found at the OMB Web site: http://www.whitehouse.gov/omb. The actual amounts for
FY 2004 are expected to be released in February 2005.
The differences between the FY 2003 SBR and the President’s Budget primarily relate to:
1. Unobligated Balances Start of Year and Spending Authority from Offsetting
Collections reflect differences between the SBR and the President’s Budget which are
attributed to the fact that the SBR includes expired appropriations in Resource
Management for $1.6 million and the President’s Budget does not.
2. A small difference exists due to the cancellation of expired accounts in Resource
Management for $75,000 out of $58 million. This amount is below the reporting
threshold used for the President's Budget.
3. The President’s Budget reflects a total of $50 million on line 40.38 which crosswalks
to line 5, “Temporarily Not Available” on the SBR. The Service reflects the same
resources on line 6, “Permanently Not Available” on the SBR. The resources
(representing $40 million in Budget Account 14-5496, State Wildlife Grants and $10
million in Budget Account 14-5495, the Landowner Incentive Program), were
rescinded during FY 2003. Accordingly after rescission, the Service identified those
budgetary resources as “Permanently Not Available.”
That same year OMB designated the resources as available for future return to the
National Parks Service (NPS) Land and Water Conservation Fund for subsequent
allocation. Although the budgetary resources remain within the DOI as “Temporarily
Not Available” to NPS, the Service reflects the impact of its 2003 rescission.
Reconciliation Steps: No adjustments were made to the Service’s accounting system, the
Federal Financial System (FFS), after the Federal Agencies’ Centralized Trial-Balance
System II (FACTS II) cutoff date.
III. U.S. Fish and Wildlife Service Financial Statements 51
Note 13 - Consolidated Statement of Financing – Allocation Transfers
Allocation transfers are the amounts of budget authority and other resources transferred to
other Federal agencies to carry out the purposes of the parent account. Within DOI, the
Service is a recipient of allocation transfers from the Bureau of Land Management
(Wildland Fire Management and Central Hazardous Materials), and the Office of the
Secretary (Natural Resources Damage Assessment). Non-Interior transferals are the
Department of Transportation, the Department of Labor, the Department of Agriculture,
and the General Services Administration.
OMB Circular A-11, “Preparation, Submission, and Execution of the Budget,” requires
transferor (parent) accounts to report their allocation agency’s transactions as part of their
SBR, while the recipient of allocation transfers reports the proprietary activity on its
Balance Sheet, Statement of Net Cost of Operations, and Statement of Changes in Net
Position. This process creates a reconciling difference titled “Components of Net Cost of
Operations related to Transfer Accounts where Budget Accounts are reported by Other
Federal Entities on the Statement of Financing.”
The following table presents information on trading partners, or entity performing the
transfer, the purpose of transfer, and the amount of reconciling differences on the
Statement of Financing.
Consolidated Statement of Financing - Allocation Transfers
for the years ended September 30, 2004 and 2003
(dollars in thousands)
Trading Partner Nature and Purpose of Transfer
2004 Reconciling
Difference
2003 Reconciling
Difference
Transfer of Appropriations where the Service is the recipient (i.e., child) and therefore
reports the proprietary activity, but not the budgetary activity:
Department of Transportation - Highway Trust Fund Federal Aid for maintenance of
Department Highways $ 7,493 $ 11,701
Department of Labor - Job Corps Employee Training services 11,927 11,576
Department of Agriculture Forest Pesticide Programs 199 147
Department of the Interior - Bureau of Land Management Wildland Fire Management Fund
Central Hazardous Fund 77,478 74,384
General Services Administration Real Property Relocation 0 10
Department of the Interior - Office of the Secretary Natural Resources and Damage
Assessment 13,804 12,582
Reconciling Difference of appropriations transferred to or from other Federal Agencies $ 110,901 $ 110,400
III. U.S. Fish and Wildlife Service Financial Statements 52
Note 14 - Consolidating Statement of Net Cost
The Government Performance and Results Act (GPRA) requires that Federal agencies
formulate strategic plans, identify major mission goals, and report performance and costs
related to these goals. Under GPRA, strategic plans are to be revised and updated every
three years. Accordingly, the Service updated its strategic plan in FY 2004 and replaced
the four mission goals and reporting responsibility segments with the new GPRA mission
goals established for DOI. The mission goals applicable for FY 2004 are: Resource
Protection, Resource Use, Recreation, Serving Communities, and Management
Excellence. These mission goals for the Service are supported by thirteen bureau-level end
outcomes.
The GPRA also requires that the Service report costs for the goals identified in the
strategic plan. Accordingly, the Service presented earned revenue and gross costs in FY
2004 by the mission goals in the current Strategic Plan. Earned revenue and gross costs for
FY 2003 were presented by the goals in the FY 2001 Strategic Plan. As a result, the FY
2004 Consolidated Statement of Net Cost is not comparable to the FY 2003 Consolidated
Statement of Net Cost.
The Service presented costs associated with acquiring, constructing, and renovating
heritage assets which were $35,000 and $31,000 for the years ended September 30, 2004
and 2003, respectively. The costs associated with acquiring and improving stewardship
lands were $85 million and $122 million for the years ended September 30, 2004 and
2003, respectively.
The supporting statements on the following pages present the Service’s cost of services
provided, earned revenue, and net cost of operations by mission goal and end outcome for
FY 2004, and by mission goal and reporting responsibility segment for FY 2003:
III. U.S. Fish and Wildlife Service Financial Statements 53
U.S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidating Statement of Net Cost
for the year ended September 30, 2004
(dollars in thousands)
Endangered
Species
Fisheries and
Habitat
Conservation
Servicewide
Support
International
Affairs
Law
Enforcement
Migratory
Birds and
State Programs
National Wildlife
Refuge System
Wildlife and
Sport Fish
Restoration Eliminations Total
Resource Protection
Cost -Services provided to the Public $ 221,654 $ 223,556 $ 255,961 $ 14,634 $ 60,289 $ 68,809 $ 274,134 $ 356,248 $ 0 $ 1,475,285
Revenue Earned from the Public 341 18,247 15,905 550 7,352 269 3,052 0 0 45,716
Net Cost of Services to the Public 221,313 205,309 240,056 14,084 52,937 68,540 271,082 356,248 0 1,429,569
Cost - Services provided to Federal Agencies 8,089 54,511 10,134 0 127 237 10,367 0 (823) 82,642
Revenue Earned from Federal Agencies 7,953 53,238 9,605 0 123 235 10,072 0 (823) 80,403
Net Cost of Services provided to Federal Agencies 136 1,273 529 0 4 2 295 0 0 2,239
Net Cost of Operations 221,449 206,582 240,585 14,084 52,941 68,542 271,377 356,248 0 $ 1,431,808
Resource Use
Cost -Services provided to the Public 22,182 4,260 0 0 0 0 4,004 0 0 30,446
Revenue Earned from the Public 0 0 0 0 0 0 414 0 0 414
Net Cost of Services to the Public 22,182 4,260 0 0 0 0 3,590 0 0 30,032
Cost - Services provided to Federal Agencies 66 0 0 0 0 0 43 0 0 109
Revenue Earned from Federal Agencies 64 0 0 0 0 0 43 0 0 107
Net Cost of Services provided to Federal Agencies 2 0 0 0 0 0 0 0 0 2
Net Cost of Operations 22,184 4,260 0 0 0 0 3,590 0 0 30,034
Recreation
Cost -Services provided to the Public 0 12,762 77,087 0 0 13,999 135,916 223,020 0 462,784
Revenue Earned from the Public 0 1,347 4,486 0 0 177 2,011 0 0 8,021
Net Cost of Services to the Public 0 11,415 72,601 0 0 13,822 133,905 223,020 0 454,763
Cost - Services provided to Federal Agencies 0 6,707 2,851 0 0 146 4,965 0 (237) 14,432
Revenue Earned from Federal Agencies 0 6,531 2,710 0 0 144 4,824 0 (237) 13,972
Net Cost of Services provided to Federal Agencies 0 176 141 0 0 2 141 0 0 460
Net Cost of Operations 0 11,591 72,742 0 0 13,824 134,046 223,020 0 455,223
Serving Communities
Cost -Services provided to the Public 0 7,404 10,104 0 0 9 115,457 0 0 132,974
Revenue Earned from the Public 0 359 0 0 0 0 314 0 0 673
Net Cost of Services to the Public 0 7,045 10,104 0 0 9 115,143 0 0 132,301
Cost - Services provided to Federal Agencies 0 1,769 0 0 0 0 1,394 0 (3) 3,160
Revenue Earned from Federal Agencies 0 1,723 0 0 0 0 1,350 0 (3) 3,070
Net Cost of Services provided to Federal Agencies 0 46 0 0 0 0 44 0 0 90
Net Cost of Operations 0 7,091 10,104 0 0 9 115,187 0 0 132,391
Totals
Cost -Services provided to the Public $ 243,836 $ 247,982 $ 343,152 $ 14,634 $ 60,289 $ 82,817 $ 529,511 $ 579,268 $ 0 $ 2,101,489
Revenue Earned from the Public 341 19,953 20,391 550 7,352 446 5,791 0 0 54,824
Net Cost of Services to the Public 243,495 228,029 322,761 14,084 52,937 82,371 523,720 579,268 0 2,046,665
Cost - Services provided to Federal Agencies 8,155 62,987 12,985 0 127 383 16,769 0 (1,063) 100,343
Revenue Earned from Federal Agencies 8,017 61,492 12,315 0 123 379 16,289 0 (1,063) 97,552
Net Cost of Services provided to Federal Agencies 138 1,495 670 0 4 4 480 0 0 2,791
Net Cost of Operations $ 243,633 $ 229,524 $ 323,431 $ 14,084 $ 52,941 $ 82,375 $ 524,200 $ 579,268 $ 0 $ 2,049,456
III. U.S. Fish and Wildlife Service Financial Statements 54
U.S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidating Statement of Net Cost
for the year ended September 30, 2003
(dollars in thousands)
Endangered
Species
Fisheries and
Habitat
Conservation
Law
Enforcement
Migratory
Birds and
State Programs
National
Wildlife Refuge
System
International
Affairs
General
Operations Eliminations Total
Sustainability of Fish and Wildlife Populations
Cost -Services provided to the Public $ 225,902 $ 104,148 $ 66,732 $ 22,740 $ 66,662 $ 14,611 $ 98,482 $ 0 $ 599,277
Revenue Earned from the Public 230 7,382 6,978 221 396 165 1,120 0 16,492
Net Cost of Services to the Public 225,672 96,766 59,754 22,519 66,266 14,446 97,362 0 582,785
Cost - Services provided to Federal Agencies 7,017 41,629 206 6 3,042 0 2,112 (320) 53,692
Revenue Earned from Federal Agencies 6,843 40,202 200 6 2,925 0 2,078 (320) 51,934
Net Cost of Services provided to Federal Agencies 174 1,427 6 0 117 0 34 0 1,758
Net Cost of Operations 225,846 98,193 59,760 22,519 66,383 14,446 97,396 0 584,543
Habitat Conservation
Cost -Services provided to the Public 37,307 134,499 0 61,755 322,737 0 170,578 0 726,876
Revenue Earned from the Public 0 8,947 0 12,938 9,509 0 3,159 0 34,553
Net Cost of Services to the Public 37,307 125,552 0 48,817 313,228 0 167,419 0 692,323
Cost - Services provided to Federal Agencies 0 31,490 0 12,475 8,619 0 5,395 (468) 57,511
Revenue Earned from Federal Agencies 0 30,536 0 12,387 8,389 0 5,309 (468) 56,153
Net Cost of Services provided to Federal Agencies 0 954 0 88 230 0 86 0 1,358
Net Cost of Operations 37,307 126,506 0 48,905 313,458 0 167,505 0 693,681
Public Use and Enjoyment
Cost -Services provided to the Public 0 6,427 0 9,751 131,783 0 25,365 0 173,326
Revenue Earned from the Public 0 541 0 136 3,285 0 368 0 4,330
Net Cost of Services to the Public 0 5,886 0 9,615 128,498 0 24,997 0 168,996
Cost - Services provided to Federal Agencies 0 6,881 0 68 2,943 0 463 (121) 10,234
Revenue Earned from Federal Agencies 0 6,634 0 66 2,823 0 455 (121) 9,857
Net Cost of Services provided to Federal Agencies 0 247 0 2 120 0 8 0 377
Net Cost of Operations 0 6,133 0 9,617 128,618 0 25,005 0 169,373
Partnerships in Natural Resources
Cost -Services provided to the Public 0 3,490 0 551,884 0 0 4,745 0 560,119
Revenue Earned from the Public 0 0 0 0 0 0 17 0 17
Net Cost of Services to the Public 0 3,490 0 551,884 0 0 4,728 0 560,102
Cost - Services provided to Federal Agencies 0 0 0 0 0 0 34 (5) 29
Revenue Earned from Federal Agencies 0 0 0 0 0 0 34 (5) 29
Net Cost of Services provided to Federal Agencies 0 0 0 0 0 0 0 0 0
Net Cost of Operations 0 3,490 0 551,884 0 0 4,728 0 560,102
Total
Cost -Services provided to the Public $ 263,209 $ 248,564 $ 66,732 $ 646,130 $ 521,182 $ 14,611 $ 299,170 $ 0 $ 2,059,598
Revenue Earned from the Public 230 16,870 6,978 13,295 13,190 165 4,664 0 55,392
Net Cost of Services to the Public 262,979 231,694 59,754 632,835 507,992 14,446 294,506 0 2,004,206
Cost - Services provided to Federal Agencies 7,017 80,000 206 12,549 14,604 0 8,004 (914) 121,466
Revenue Earned from Federal Agencies 6,843 77,372 200 12,459 14,137 0 7,876 (914) 117,973
Net Cost of Services provided to Federal Agencies 174 2,628 6 90 467 0 128 0 3,493
Net Cost of Operations $ 263,153 $ 234,322 $ 59,760 $ 632,925 $ 508,459 $ 14,446 $ 294,634 $ 0 $ 2,007,699
III. U.S. Fish and Wildlife Service Financial Statements 55
C. Required Supplementary Information
Required Supplementary Information (RSI) covers:
• Combining Statement of Budgetary Resources
• Facilities Management
III. U.S. Fish and Wildlife Service Financial Statements 56
Combining Statement of Budgetary Resources
U.S. Department of the Interior
U.S. Fish and Wildlife Service
Combining Statement of Budgetary Resources
for the year ended September 30, 2004
(dollars in thousands)
Resource
Management
Sport Fish
Restoration
Grants
Federal Aid
in Wildlife
Restoration
Grants
Other
Grants
Total
Grants Miscellaneous
Total
Budgetary
Accounts
Budgetary Resources:
Budget Authority:
Appropriations Received $ 963,352 $ 463,375 $ 222,890 $ 273,255 $ 959,520 $ 180,348 $ 2,103,220
Net Transfers, Current Year Authority (+/-) 5,200 (117,960) 0 0 (117,960) 18,320 (94,440)
Unobligated Balance:
Beginning of Fiscal Year 30,365 149,178 61,510 180,633 391,321 149,167 570,853
Net Transfers, Unobligated Balance, Actual (+/-) 15,296 0 0 0 0 0 15,296
Spending Authority from Offsetting Collections:
Earned
Collected 137,397 0 0 1 1 1,665 139,063
Receivable from Federal Sources (3,044) 0 0 0 0 (587) (3,631)
Change in Unfilled Customer Orders
Advance Received (344) 0 0 0 0 0 (344)
Without Advance from Federal Sources 71,794 0 0 0 0 (911) 70,883
Subtotal: Spending Authority from Offsetting Collections 205,803 0 0 1 1 167 205,971
Recoveries of Prior Year Obligations 16,212 36,475 15,270 7,335 59,080 4,010 79,302
Permanently Not Available (11,932) 0 0 (2,929) (2,929) (1,462) (16,323)
Total Budgetary Resources $ 1,224,296 $ 531,068 $ 299,670 $ 458,295 $ 1,289,033 $ 350,550 $ 2,863,879
Status of Budgetary Resources:
Obligations Incurred:
Direct $ 957,186 $ 344,173 $ 242,320 $ 245,023 $ 831,516 $ 207,503 $ 1,996,205
Reimbursable 203,682 0 0 0 0 140 203,822
Total Obligations Incurred 1,160,868 344,173 242,320 245,023 831,516 207,643 2,200,027
Unobligated Balance: 0
Apportioned 59,831 186,894 57,349 213,272 457,515 142,909 660,255
Unobligated Balance Not Available 3,597 0 0 0 0 0 3,597
Total Status of Budgetary Resources $ 1,224,296 $ 531,067 $ 299,669 $ 458,295 $ 1,289,031 $ 350,552 $ 2,863,879
Relationship of Obligations to Outlays:
Obligations Incurred $ 1,160,868 $ 344,173 $ 242,320 $ 245,023 $ 831,516 $ 207,643 $ 2,200,027
Obligated Balance, Net, Beginning of Fiscal Year 269,263 337,866 193,561 318,757 850,184 92,280 1,211,727
Obligated Balance, Net, End of Fiscal Year:
Accounts Re

Click tabs to swap between content that is broken into logical sections.

Front Cover Photo Credit: National Bison Range, USFWS
Table of Contents
MESSAGE FROM THE DIRECTOR OF U.S. FISH AND WILDLIFE SERVICE ....................................5
I. THE UNITED STATES FISH AND WILDLIFE SERVICE ...................................................................7
A. MISSION AND ORGANIZATION.................................................................................................................. 8
B. ORGANIZATIONAL CHART...................................................................................................................... 10
II. MANAGEMENT’S DISCUSSION AND ANALYSIS...........................................................................11
A. MISSION GOALS AND PERFORMANCE..................................................................................................... 12
Mission Goal 1 - Resource Protection................................................................................................ 13
Mission Goal 2 - Resource Use .......................................................................................................... 13
Mission Goal 3 - Recreation............................................................................................................... 14
Mission Goal 4 - Serving Communities............................................................................................. 14
Mission Goal 5 - Management Excellence ........................................................................................ 14
Data Verification............................................................................................................................... 15
Data Validity ..................................................................................................................................... 15
B. MANAGEMENT CONTROLS AND LEGAL COMPLIANCE ............................................................................. 16
C. FINANCIAL HIGHLIGHTS ....................................................................................................................... 17
D. LIMITATIONS OF THE FINANCIAL STATEMENTS...................................................................................... 19
E. ANALYSIS OF FINANCIAL STATEMENTS.................................................................................................. 20
III. U.S. FISH AND WILDLIFE SERVICE FINANCIAL STATEMENTS ..............................................23
A. PRINCIPAL FINANCIAL STATEMENTS ..................................................................................................... 24
B. NOTES TO PRINCIPAL FINANCIAL STATEMENTS..................................................................................... 29
Note 1 - Summary of Significant Accounting Principles .................................................................. 29
Note 2 - Assets Analysis .................................................................................................................... 37
Note 3 - Fund Balance with Treasury and Cash .............................................................................. 38
Note 4 - Investments, Net.................................................................................................................. 39
Note 5 - Accounts, Interest, and Taxes Receivable, Net................................................................... 40
Note 6 - General Property, Plant and Equipment (PP&E), Net ...................................................... 41
Note 7 - Seized and Forfeited Property............................................................................................. 42
Note 8 - Liabilities Analysis .............................................................................................................. 43
Note 9 - Operating Leases ................................................................................................................. 46
Note 10 - Imputed Financing Sources............................................................................................... 47
Note 11 - Dedicated Collections......................................................................................................... 48
Note 12 - Combined Statement of Budgetary Resources ................................................................. 49
Note 13 - Consolidated Statement of Financing – Allocation Transfers ......................................... 51
Note 14 - Consolidating Statement of Net Cost................................................................................ 52
C. REQUIRED SUPPLEMENTARY INFORMATION .......................................................................................... 55
Combining Statement of Budgetary Resources ................................................................................ 56
Facilities Management ...................................................................................................................... 58
D. REQUIRED SUPPLEMENTARY STEWARDSHIP INFORMATION ................................................................... 60
Stewardship Lands ............................................................................................................................ 61
Stewardship Investments .................................................................................................................. 63
Heritage Assets ................................................................................................................................. 65
IV. INDEPENDENT AUDITORS’ REPORT ............................................................................................73
Message from the Director of U.S. Fish and Wildlife Service
I am pleased to present the U.S. Fish and Wildlife Service’s Annual Financial Report, providing information on
our financial, management, and programmatic results for fiscal year 2004.
I am proud to announce that the Service has received an unqualified audit opinion from the independent
auditors who concluded that the Service’s financial statements are presented fairly in all material respects. This
demonstrates our dedication to maintaining sound financial practices and reliable financial information to
support our commitment to effectively managing resources to protect and enhance fish, wildlife, and plants and
their habitats for the benefit of this and future generations.
We addressed fiscal challenges in fiscal year 2004. The Independent Auditors’ Report for fiscal year 2003
identified one reportable condition involving areas relating to general controls over financial management
systems where controls need to be improved. Additionally, five reportable conditions related to internal controls
over financial reporting and processes, including one material weakness pertaining to processes, controls, and financial reporting related to
property, plant, and equipment. With regard to compliance with laws and regulations, the Service was reported not to conform to portions
of the Federal Financial Management Improvement Act (FFMIA).
We aggressively implemented actions for all reportable conditions and except for the reportable condition relating to general controls over
financial management systems, all were resolved or downgraded in the Independent Auditors’ Report for fiscal year 2004. The Service has
and will continue to take specific corrective actions to ensure greater security and general controls over sensitive information systems.
Therefore, with the exception noted, I conclude that the controls provide reasonable assurance that Service operations are being conducted
consistent with the intended objectives of Office of Management and Budget’s (OMB) Circular A-130.
Also in fiscal year 2004, we evaluated the Service’s management controls as required by the FFMIA. The purpose of this evaluation is to
identify any material weakness that places the overall control system at risk and to ensure that intended program results were achieved,
resources were used consistent with the Service’s mission, resources are protected from waste, fraud, and mismanagement, laws and
regulations are followed, and information is reliable and reported timely. Again, I’m pleased to report that the Service is in compliance and
no such weakness was identified.
The financial and performance data presented in this report are complete and reliable, according with guidance from OMB. Additionally,
we evaluated our financial management system as required by the FFMIA. I conclude that the Service’s financial system substantially
complies with the U.S. Standard general ledger at the transaction level. However, the system does not substantially comply with federal
financial management system requirements regarding information technology security and general controls, and does not substantially
comply with Federal accounting standards relating to condition assessments on stewardship land.
The financial information presented in this report provides the means to manage Service goals and objectives. It also illustrates how the
Service supports the Department of the Interior’s vision for effective stewardship based on communication, consultation, and cooperation,
all in the service of conservation.
The Service is entrusted with the protection, conservation, and recovery of threatened and endangered species, migratory birds, some
marine mammals, inter-jurisdictional and other fisheries and their habitats, stewardship of the National Wildlife Refuge System, and assists
foreign governments with their conservation efforts. Additionally, we oversee federal assistance programs to states for sport fish restoration
and wildlife restoration which distribute hundreds of millions of dollars from excise taxes on fishing and hunting equipment to state
wildlife agencies. We accept these responsibilities with optimism and resolve. As we meet the inspiring challenges of the future, we pursue
our mission in the most efficient and effective manner to meet our responsibilities as stewards of the public trust.
Steven A. Williams
November 1, 2004
I. The United States Fish and Wildlife Service 7
I. The United States Fish and Wildlife Service
Communities and individuals throughout the United States (U.S.) have a strong commitment to fish and wildlife resources. Many
communities realize substantial economic benefits from tourism and visitors that come to enjoy fish and wildlife. Hunting and
fishing remain strong components of community culture all along the Nation’s great river systems. As an asset of tremendous
environmental, recreational, and economic importance, this Nation’s fish and wildlife resources represent a vital part of our
natural heritage, one that is facing increasing pressures. For this reason, the mission of the Service grows continuously more
complex and critical.
I. The United States Fish and Wildlife Service 8
A. Mission and Organization
The Service’s mission is working with others to conserve, protect and enhance fish, wildlife, plants, and their habitats for the
continuing benefit of the American people.
Mission The Service is the principal Federal agency responsible for conserving, protecting and
enhancing fish, wildlife, plants, and their habitats for the continuing benefit of the
American people. The Service manages the 91-million-acre National Wildlife Refuge
System (NWRS), which encompasses 544 National Wildlife Refuges (NWR), thousands
of small wetlands, and other special management areas. It also operates 69 National Fish
Hatcheries, 64 fishery resource offices, and 81 ecological services field stations. The
agency enforces Federal wildlife laws, administers the Endangered Species Act, manages
migratory bird populations, restores nationally significant fisheries, conserves and restores
wildlife habitat such as wetlands, and helps foreign governments with their conservation
efforts. It also oversees the Federal Aid program that distributes hundreds of millions of
dollars in excise taxes on fishing and hunting equipment to State fish and wildlife
agencies.
The Service has the privilege of being the primary agency responsible for the protection,
conservation, and renewal of these resources for this and future generations. We accept
this responsibility and challenge with optimism and resolve to pass along to future
generations of stewards a fish and wildlife resource heritage that is stronger than when it
was entrusted to us.
The Service employs approximately 10,000 permanent and temporary staff and is
supported by citizens volunteering approximately 1.4 million hours. Although the Service
is headquartered in Washington, D.C., over 90% of the workforce is located in
communities across the Nation at over 700 field stations supported by seven regional
offices. As a result of our involvement at the community level, the Service is continuously
focused on building and maintaining relationships with a broad array of stakeholders,
including the states, tribes, community groups, and other organizations.
I. The United States Fish and Wildlife Service 9
Organization As shown in the accompanying organization chart, the Directorate of the Service is
comprised of the Director, two Deputy Directors, ten Assistant Directors, and one Chief of
Law Enforcement, all located in Washington, D.C., and seven Regional Directors, located
throughout the U.S. Service headquarters offices are located in Washington, D.C. and
Arlington, Virginia, with field units in Denver, Colorado, and Shepherdstown, West
Virginia.
Regional Offices are located throughout the U.S. Region 1, located in Portland, Oregon,
serves California, Hawaii, Idaho, Nevada, Oregon, and Washington, as well as the Trust
Territories of the Pacific. (Region 1 also includes the California/Nevada Operations
Office.) Region 2, located in Albuquerque, New Mexico, serves Arizona, New Mexico,
Oklahoma, and Texas. Region 3, located in Ft. Snelling, Minnesota, serves Indiana,
Illinois, Iowa, Michigan, Minnesota, Missouri, Ohio, and Wisconsin. Region 4, located in
Atlanta, Georgia, serves Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana,
Mississippi, North Carolina, South Carolina, and Tennessee, as well as Puerto Rico and the
Virgin Islands. Region 5, located in Hadley, Massachusetts, serves Connecticut, Delaware,
Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, Virginia, Vermont, West Virginia, and the District of Columbia. Region 6,
located in Denver, Colorado, serves Kansas, Montana, North Dakota, South Dakota,
Nebraska, Colorado, Utah, and Wyoming. Region 7, located in Anchorage, Alaska serves
the entire State of Alaska.
In the Department of the Interior (DOI), the Service’s Director reports to the Assistant
Secretary for Fish and Wildlife and Parks and has direct line authority over Service
headquarters and the seven regional offices. Assistant Directors provide policy, program
management and administrative support to the Director. Regional Directors guide policy
and program implementation through their field structures and coordinate activities with
Service partners.
Chapter I. The United States Fish and Wildlife Service 10
B. Organizational Chart
Assistant Director
Wildlife and Sport
Fish Restoration
Programs
Director
Deputy Directors
Assistant Director
National Wildlife
Refuge System
Assistant Director
Migratory Birds
Assistant Director
Fisheries &
Habitat
Conservation
Assistant Director
Endangered
Species
Assistant Director
International
Affairs
Chief
Law Enforcement
Assistant Director
External Affairs
Assistant Director
Budget, Planning
and Human
Resources
Assistant Director
Business
Management &
Operations
Assistant Director
Information Resources
and Technology
Management (CIO)
Division of
Federal
Assistance
Division of
Natural
Resources
Division of Realty
Division of
Conservation,
Planning and
Policy
Division of Visitor
Services and
Communication
Division of
Migratory Bird
Management
Division of Bird
Habitat
Conservation
Division of
Engineering
Division of
Contracting &
Facilities
Management
Division of
Financial
Management
Division of
Economics
Division of Safety
and Health
Division of
Congressional &
Legislative Affairs
Division of Public
Affairs
National
Conservation
Training Center
Native American
Liaison
Division of
Conservation
Partnerships
Division of
Fish & Wildlife
Management &
Habitat Restoration
Division o the
National Fish
Hatchery System
Division of
Federal Program
Activities
Division of
Environmental
Quality
Division of
Information Resources
and Technology
Management
Division of
Human
Resources
Division of
Budget
Division of Policy
& Directives
Management
Planning &
Evaluation Staff
Division of Law
Enforcement
Operations
Regional Special
Agents-in-Charge
Regions 1-7
Clarke R. Bavin
National
Forensics
Laboratory
Division of
Technical & Field
Support
Division of
Conservation and
Classification
Division of
Consultation, Habitat
Conservation Plans,
Recovery & State
Grants
Division of
Partnership and
Outreach
Division of
Management
Authority
Division of
Scientific
Authority
Division of
International
Conservation
Regional Director
Region 1
Portland, OR
California Nevada
Operations
Manager
Sacramento, CA
Regional Director
Region 6
Denver, CO
Regional Director
Region 2
Albuquerque, NM
Regional Director
Region 7
Anchorage, AK
Regional Director
Region 5
Hadley, MA
Regional Director
Region 3
Fort Snelling, MN
Regional Director
Region 4
Atlanta, GA
II. Management’s Discussion and Analysis 11
II. Management’s Discussion and Analysis
The following areas are addressed in the Management’s Discussion and Analysis:
A. Mission Goals and Performance
B. Management Controls and Legal Compliance
C. Financial Highlights
D. Limitations of Financial Statements
E. Analysis of Financial Statements
II. Management’s Discussion and Analysis 12
A. Mission Goals and Performance
DOI has developed a Strategic Plan for FY 2003 - 2008 that encompasses the missions and
goals of its eight bureaus and the DOI Offices (http://www.doi.gov/ppp/stratplanfy2003_2008).
The plan is organized around the DOI’s principal mission areas:
• Resource Protection
• Resource Use
• Recreation
• Serving Communities
• Management Excellence
The Service is entrusted with the protection, conservation, and recovery of threatened and
endangered species, migratory birds, some marine mammals, inter-jurisdictional and other
fisheries and their habitats, and stewardship of NWRS. As such, the Service will significantly
contribute to the successful achievement of the DOI’s mission goals for Resource Protection,
Recreation, Serving Communities, and Management Excellence while supporting Resource Use
through a collaborative environmental consultation effort.
The following information delineates Strategic Plan goal attainment information for FY 2004,
and provides explanations where appropriate for analysis and discussion.
II. Management’s Discussion and Analysis 13
Mission Goal 1 - Resource
Protection
Resource Protection/Improve Health of Watersheds, Landscapes, and Marine Resources
that are DOI Managed or Influenced in a Manner Consistent with Obligations Regarding
the Allocation and Use of Water/Achieve Watershed and Landscape Goals Through
Voluntary Partnerships
The Service estimated that 403,072 acres of wetlands or uplands would be restored or
protected in FY 2004. Estimates reveal 318,070 acres were restored or protected,
therefore, the target was not met. Estimates are based on prior year’s performance trend
data that is subject to change. For example, because the reporting programs are voluntary
programs, exact estimates of landowner interest by habitat type are not possible. Also,
because the estimates are based on the prior year’s performance, they may not be
achievable if landowner interest varies from year to year.
Resource Protection/Sustain Biological Communities on DOI Managed or Influenced
Lands and Waters in a Manner Consistent with Obligations Regarding the Allocation and
Use of Water
Based on estimates, the Service set a FY 2004 target of stabilizing or improving the
population status of 347 (39%) of the 894 Federally-listed threatened or endangered
species listed for a decade or more. Current estimates are that 339 (38%) of these species
were stabilized or improved and thus this target was met*. In meeting this target for FY
2004, the role of uncontrollable natural events (hurricanes and droughts) that may affect a
species’ population status and pose new threats became noteworthy for future estimates.
Additionally, the Service set a target to prevent listing 4 (2%) of the 256 candidate species
as a result of conservation actions or agreements. This target was not met, but
conservation actions or agreements did prevent listing 3 species. The complex and
voluntary nature of establishing and implementing candidate agreements adds to the
difficulties in accomplishing the target. For example, the candidate agreement for the
California golden trout was not signed until just before the end of FY 2004, leaving no
time to make listing decisions. The Service expects to complete these tasks in FY 2005.
Resource Protection/Sustain Biological Communities on DOI Managed or Influenced
Lands and Waters Consistent with Obligations Regarding the Allocation and Use of
Water
The Service set a FY 2004 target to restore or enhance 3,969,495 acres consistent with
management documents, program objectives, and consistent with substantive and
procedural requirements of state and Federal water law. An estimated 3,365,558 acres
(85%) of the target was attained. The FY 2004 target was not met due to several
unplanned events. In FY 2004, about 400,000 acres underwent prescribed fires and an
additional 400,000 acres was targeted for water level management at Okefenokee NWR.
Thus, some of the acreage targeted for restoration in FY 2004 was contained in these
areas and, therefore, could not be restored or enhanced.
* The DOI’s guidance and specifications for the performance section of bureau FY 2004
annual reports considers targets to be “met” when final or preliminary data indicates that
performance will be at or within 5% of the target.
Mission Goal 2 - Resource
Use
Although Resource Use is only tangentially applicable to the activities performed by the
Service and the DOI Strategic Plan does not contain an applicable performance measure,
the Service does contribute through a collaborative environmental consultation effort.
These consultation activities contribute to identifying environment issues and potential
mitigation strategies. Service costs in this mission goal are related to consultation work
performed for other parties. Approximately 2% or $31 million of the Service’s
appropriated funding is directed to these efforts. This activity is funded by Congressional
appropriation, not reimbursable agreements, but is similar to reimbursable agreements in
that there are no meaningful measures relating to the activity other than workload type
measures.
II. Management’s Discussion and Analysis 14
Mission Goal 3 - Recreation Recreation/Provide for a Quality Recreation Experience, Including Access, and
Enjoyment of Natural and Cultural Resources on DOI Managed and Partnered Lands and
Waters
The Service set targets for accomplishment in the following three intermediate
performance measures:
Community Partnerships: The Service set a FY 2004 target to maintain 273 of 665
recreation sites (41%) through community partnerships. These are groups formally
engaged (through Memorandums of Understanding, Memorandums of Agreement, or
General Agreements) in helping the Service achieve its mission. The 311 community
partnerships established in FY 2004 exceeded our targeted goal by 14%. This was
due in part by the method of collecting data, which was refined throughout FY 2004.
Future targets will be based on the number of new friends groups established in any
one FY.
Facility Condition Index (FCI): The Service uses the FCI, a standard measure of the
physical condition for facilities, to estimate its deferred maintenance needs. The FCI
is the ratio of estimated deferred maintenance needs to the estimates of replacing
facilities at today’s costs. The Service set the FCI target for FY 2004 at .181 for
refuge recreational facilities. It is used to provide information to support the
intermediate measure of achieving a condition rating of fair or better for NWRS
recreational facilities (docks, boat launches, kiosks, observation decks, campground
board walks, and picnic areas). Our FCI target was not met as the ratio was .262 at
2004 FY end. With condition assessments only about one-half completed and
replacement costs being refined, the numerical basis for the index is expected to
fluctuate in the future (the Required Supplementary Information (RSI) section of this
report provides information on the Service’s overall facilities maintenance needs).
Facilitated Programs: The Service set a FY 2004 target for refuge staff (paid
employees, volunteers, and cooperating association employees) to offer facilitated
refuge interpretation or educational programs to 1,315,984 refuge visitors. This target
was exceeded, as 16,354,000 visitors were offered facilitated programs. The initial
estimate was based on on-site interpretive and education programs only. However,
the DOI strategic plan template for this measure greatly expanded coverage this year
to include off-site interpretive programs, visitor centers, contact stations, and special
events.
Mission Goal 4 - Serving
Communities
Protect Lives and Property/Intermediate Strategy 1, Improve Fire Management
The Service set a FY 2004 target of limiting land on refuges burned by unplanned and
unwanted wildland fires to 259,963 acres. These fires include those burning outside the
parameters defined in land use or fire management plans. This target was not met with
1,922,035 acres burned. Although the targeted total number of acres was not met, all areas
of the country except Alaska met this goal. Out of a total of 1,922,035 burned acres,
46,058 acres (2%) were burned in the lower 48 states and 1,875,977 acres (98%) were
burned in Alaska, where fire activity was severe and most fires are managed under a
limited suppression strategy. The Service did exceptionally well in restricting burned acres
where a risk to people, structures, or communities was a concern.
Mission Goal 5 -
Management Excellence
Management Excellence
The Service set a FY 2004 target of 1,303,240 volunteer hours and exceeded it by 7% for
a total of 1,398,953 hours. With Service employees working side-by-side with volunteers
on every level, the Service protects, conserves, and restores our nation’s fish, wildlife,
plants, and their habitat.
II. Management’s Discussion and Analysis 15
Data Verification The Service is committed to ensuring that those who use the Service’s reported
performance information to make decisions can do so with the confidence that our data is
reliable and valid. The Service has made significant progress in developing the essential
processes that support data verification methods used by the major program areas in
determining data quality. For example, to ensure standardized data definitions, the Service
has worked closely with the Department in developing performance measure definition
templates for all DOI Strategic Plan performance measures. All goals and measures are
developed and reviewed by Service officials and staff from the field through the
headquarters level. Each goal is measurable and clear, and was developed to have a direct
bearing on the mission activity in which it is categorized.
Data sources are clearly identified. The Service utilizes a number of databases for
collecting and reporting performance data. For example, the Ecological Services program
maintains the Environmental Conservation Online System, Threatened and Endangered
Species System, and Habitat Information Tracking System. The Fisheries Program uses its
Fishery Information System (including the Fisheries Operational Needs System) to track
performance. The Refuge Program utilizes a series of national databases that collect and
provide crucial performance information including: Refuge Management Information
System, Refuge Comprehensive Accomplishment Reporting System, and Refuge
Operating Needs System. The Migratory Bird Management Program utilizes a national
database to enter and track its performance information.
All data is aggregated at the regional level. The region programs offices have designated
responsible officials who certify the data is accurate and that proper procedures are
followed during each reporting period. The collection staffs in the field offices are highly-skilled
and well-trained biologists. The assistant regional directors at each regional office
have the ultimate responsibility for verifying the data accuracy. The data accuracy is again
checked at the National Headquarters Office in the offices of the assistant directors for the
various reporting programs.
While we strive to collect and report accurate data, data limitations exist for some
performance measures. Some performance data are collected by outside sources. For
example, Breeding Bird Survey data is provided by the U.S. Geological Survey -
Biological Research Division. The National Audubon Christmas Bird Count is collected
by volunteers. The International Affairs Program relies on obtaining plant and animal
species performance data from foreign sources.
Data Validity The goals directly measure the results that the organization hopes to achieve in the
delivery of the core components of the mission. Data collected is relevant and presents an
accurate picture of the performance of the organization toward achieving the goals.
Performance data for goals is obtained by existing data collection processes and is
supported by program information management systems. To a large degree, the Service
must rely on the quality assurance/quality controls in place at the primary data source to
ensure data accuracy.
II. Management’s Discussion and Analysis 16
B. Management Controls and Legal Compliance
The Service is dedicated to maintaining integrity and accountability in all programs and
operations. Service management assesses its systems of management, administrative, and
financial controls to ensure that:
• Programs achieve their intended results
• Resources are used consistent with the Service’s mission
• Resources are protected from waste, fraud, and mismanagement
• Laws and regulations are followed
• Reliable and timely information is maintained, reported, and used for decision
making
The Service assesses the adequacy of its management controls through continuous
monitoring and periodic evaluations, consistent with Office of Management and Budget
Circular A-123 and the Federal Managers’ Financial Integrity Act (FMFIA). Each year,
the Service identifies specific management control assessments planned for the fiscal year.
The results from these internal reviews as well as results in certain final audit reports
issued primarily by the Office of Inspector General and the U.S. General Accounting
Office are considered in the development of the Service’s annual assurance statement on
management controls. The statement also considers information obtained from the
knowledge and experience management has gained from the daily operation of programs
and systems of accounting and administrative controls. The statement informs DOI of the
effectiveness of the Service’s management controls, and includes information about any
pending and new bureau-level material weaknesses and corrective actions.
In FY 2004, management control reviews were conducted in administrative, program, and
information technology areas. No material control weaknesses were identified. Corrective
actions for the non-material control weaknesses are monitored until completion.
II. Management’s Discussion and Analysis 17
C. Financial Highlights
Service Financial Performance In FY 2004 the Service continued to improve the quality and timeliness of its financial
information. Through enhancements to reporting processes and the expanded use of web-based
technology, the Service processes payments more efficiently and as a result,
improved its rate of compliance with departmental and Federal payment processing
requirements. The Service’s challenge remains to process financial and related information
received from over 700 field offices in a timely and efficient manner.
Improving Financial
Transaction Processes and
Results
In FY 2004, the Service continued to maintain strong transaction process performance
levels. For example, our accounts receivable delinquency rate (excluding debts referred to
the Department of the Treasury for action) was only about 3% as of the end of FY 2004.
As required by the Department, Service offices conducted risk assessments for improper
payments by reviewing programs and activities according to departmental guidance. After
performing risk identification and risk analysis, offices determined annual dollar volumes,
annual estimated improper payment amounts, percentages of improper payments to dollar
volumes, and risk ratings. No program in the Service was rated as a high risk for making
significant improper payments.
In FY 2004, the Service paid its vendors on time 98% of the time, paying only $29,605 in
late payment penalties on over $480 million of total payments to vendors. During the same
period, 95% of the Service’s payments to vendors were accomplished through the
Electronic Funds Transfer (EFT). In FY 2003, we also achieved an on time payment rate
of 98% and EFT payment rate of 95%.
Cardholders and approving officials are regularly advised of their respective
responsibilities under the purchase card program. Failure to comply with charge card
policy can create an environment open for delinquent account balances or unauthorized
use of Service funds. In FY 2004, Service employee travel charge card accounts
delinquent more than 60 days represented less than 1% of the total Service cardholders,
which is less than the Federal Government FY 2004 rate of 3%.
II. Management’s Discussion and Analysis 18
Improving the Accuracy and
Timeliness of Financial
Information
The President’s Management Agenda, Governmentwide Initiatives, Improved Financial
Performance section, challenges agencies to provide accurate and timely financial
information. During FY 2004, the Service implemented several new policies and
processes designed to improve the accuracy and timelines of its financial reporting and
information.
• The audit report on the Service’s FY 2003 financial statements identified a
material weakness relating to financial reporting of its real property. In response,
the Service established a team to evaluate the organizational structure, policies and
procedures relating to our real property management activities. Based on the
results of the evaluation, the team prepared a comprehensive manual providing
detailed technical guidance to facilitate accurate processing and reporting of real
property data. This guidance was implemented during FY 2004, resulting in more
accurate and timely real property information. The FY 2003 audit finding was
lowered to a reportable condition in the FY 2004 audit report.
• The Service implemented a Central Contractor Registration (CCR) database of
contractors approved to conduct business with the Federal Government. The CCR
helps make the payment process more efficient and reduces the number of
erroneous payments. It also serves to increase the visibility of vendors, and
establishes a common source of vendor data for the Federal Government. As of the
end of FY 2004, 82% of the vendors used by the Service were registered in the
CCR.
• The Service implemented a web-based questionnaire to assess the presence and use
of internal controls over key financial processes performed throughout the Service.
Each of the Service's offices performing financial functions will complete the
questionnaire at least once every four years. In 2004, 196 or approximately 27% of
the Servicewide eligible stations completed the questionnaire, exceeding the
annual goal of 25%. Data from these surveys will be used as a tool to strengthen
guidance or initiate timely corrective actions for problems discovered as a result of
survey responses.
• As part of the President’s Management Agenda, the Office of Management and
Budget (OMB) has established accelerated due dates for completing performance
and accountability reports. Effective FY 2004, the DOI’s Performance and
Accountability Report is due 45 days from the end of the FY. The Service
instituted comprehensive quarterly financial statements throughout FY 2004 to
meet the mandatory accelerated reporting schedule.
Managing the Sport Fish
Restoration Account (SFRA)
The Service’s Sport Fish Restoration Account (SFRA) makes grants available to states to
restore, conserve, manage, protect, and enhance sport fish resources and coastal wetlands,
and also to enhance public use and benefits from sport fish resources. The source of
funding for the SFRA is the Aquatic Resources Trust Fund (ARTF), which receives
revenue through excise taxes levied on the sale of fishing tackle and equipment, certain
motorboat and small engine gasoline, and interest earned on invested trust funds. In
addition to the SFRA, the ARTF funds the Boating Safety Account, which provides
funding for boating safety programs conducted by the U.S. Coast Guard, and also coastal
wetlands initiatives conducted by the Corps of Engineers. Title 26 of the U.S. Code,
Section 9602 designates the Department of the Treasury as manager of the ARTF, with
overall responsibility for the fund’s accounting and investment activities. The ARTF is
presented on the Service’s financial statements in accordance with the requirements of
Statement of Federal Financial Accounting Standards (SFFAS) Number 7, Accounting for
Revenue and Other Financing Sources, and Statement of Federal Financial Accounting
Concepts (SFFAC) Number 2, Entity and Display, which requires trust funds that finance
multiple programs to be reported by the entity with the preponderance of fund activity.
II. Management’s Discussion and Analysis 19
D. Limitations of the Financial Statements
The Principal Financial Statements have been prepared to report the financial position and
results of operations of the Service, pursuant to the requirements of 31.U.S.C. 3515(b).
The statements have been prepared from the books and records of the Service in
accordance with prescribed formats. The statements are different from the financial reports
used to monitor and control budgetary resources, which are prepared from the same books
and records. The financial statements should be read with the realization that they are a
component of the U.S. Government, a sovereign entity, and that liabilities reported in the
financial statements cannot be liquidated without legislation providing resources to do so.
II. Management’s Discussion and Analysis 20
E. Analysis of Financial Statements
The Service produces audited annual financial statements that summarize its financial
activity and financial position. The Principal Financial Statements include:
1. Consolidated Balance Sheet
2. Consolidated Statement of Net Cost
3. Consolidated Statement of Changes in Net Position
4. Combined Statement of Budgetary Resources
5. Consolidated Statement of Financing
The notes accompanying the financial statements provide additional detail and context
concerning the information presented in the financial statements. Two other statements,
the Consolidating Statement of Net Cost and the Combining Statement of Budgetary
Resources provide additional detail of information presented in the financial statements.
Budgetary Resources The Service obtains most of its funding from enacted appropriations. In FY 2004, the
Service’s appropriations budget was approximately $2.10 billion. The total budgetary
resources available for use in FY 2004 are approximately $2.86 billion. This includes
budget authority, unobligated balances as of the beginning of the year, net transfers of
budget authority, and spending authority from offsetting collections. In FY 2003, the
Service’s appropriation budget was $2.09 billion, with total budgetary resources available
for use amounting to about $2.84 billion.
Earned Revenue In addition to budgetary appropriations, the Service obtains funding to support its
programs from reimbursable agreements, where the Service receives compensation for
services it provides to other Federal agencies and public entities. The Service also earns
revenue from fees and collections relating to its various programs. In FY 2004, the Service
recognized approximately $152 million in earned revenue compared with $173 million in
FY 2003.
Expenses The Service’s cost of operations before earned revenue in FY 2004 was approximately
$2.20 billion. The table below provides the Service’s analysis of expenses by mission
goal. (The Service updated its strategic plan for FY 2004 and established new mission
goals. As a result, FY 2003 expenses are not available by the new mission goals.)
Expenses by Mission Goals
FY 2004
(dollars in thousands)
Mission Goal
Amount of
FY 2004 Expenses
Percentage of
FY 2004 Expenses
Resource Protection $ 1,558 70.8 %
Resource Use 31 1.4
Recreation 477 21.7
Serving Communities 136 6.1
Total $ 2,202 100.0 %
II. Management’s Discussion and Analysis 21
Assets The largest portion of reported assets, approximately 42.8%, is Treasury securities held by
the Service representing invested amounts from the Federal Aid in Wildlife Restoration
Fund (approximately $363 million), and ARTF (approximately $1.45 billion). As of
September 30, 2003, approximately $453 million was held in the Wildlife Restoration
Fund, and about $1.42 billion was included in the ARTF, representing about 46.2% of
Service Assets. Although the Department of the Treasury is responsible by statute for the
balances in the ARTF, it is presented on the Service’s financial statements in accordance
with the requirements of the SFFAC Number 2, Entity and Display.
The Service’s Fund Balance with the Department of the Treasury, as of September 30,
2004, is approximately $1.48 billion, or approximately 34.9% of Service assets. As of
September 30, 2003, the Service’s fund balance with the Department of the Treasury was
$1.28 billion, or 31.2% of total assets. The portion of this balance available to the Service
at any point in time depends on the terms of the Service’s appropriation language, and
other applicable statutes.
The Service’s investment in Property, Plant and Equipment (PP&E), net of accumulated
depreciation, is approximately $900 million, or approximately 21.3% of Service assets. As
of September 30, 2003, the Service’s net PP&E was $862 million, also representing about
21.3% of Service assets. The Service does not report stewardship property, such as NWRs
and waterfowl production areas in its financial statements. The Service also excludes
heritage assets from its reports, such as land, buildings, and structures recognized for their
ecological, cultural, historical, and scientific importance. Stewardship and heritage assets
are not recognized as having an identifiable financial value that can be quantified on
financial statements. In accordance with the requirements of the SFFAS Number 6,
Property, Plant and Equipment, purchases of these assets are considered expenses of the
accounting period they are acquired.
Liabilities and Net Position The largest portion of Service liabilities, approximately $421 million as of September 30,
2004, consists of amounts owed to the U.S. Coast Guard and the Corps of Engineers from
the ARTF. As of September 30, 2003, the ARTF liability to these agencies amounted to
$390 million. These liabilities are reported in Service financial statements in accordance
with the requirements of SFFAC Number 2, Entity and Display.
The Service has approximately $141 million in unfunded liabilities to the public, which
cannot be paid until funds are appropriated by Congress in future periods. These liabilities
consist primarily of unfunded annual leave and the Service’s actuarial Federal Employees
Compensation Act (FECA) liability. They also include environmental cleanup liabilities,
representing the future costs of remediating hazardous waste, and landfills existing on
Service lands. In FY 2004, unfunded liabilities include estimated costs to repair damage to
NWRs, National Fish Hatcheries, and other Service facilities caused by hurricanes and
storms. The following table summarizes the Service’s unfunded liabilities to the public.
Unfunded Liabilities to the Public
as of September 30, 2004 and 2003
(dollars in millions)
Unfunded Liabilities September 30, 2004 September 30, 2003
Federal Employees Compensation Act $ 59 $ 62
Unfunded Annual Leave 48 46
Environmental Cleanup 13 12
Other 21 2
Total $ 141 $ 122
II. Management’s Discussion and Analysis 22
The Service’s Net Position consists of two components:
1. Unexpended Appropriations
2. Cumulative Results of Operations
The Unexpended Appropriations amount reflects spending authority made available to the
Service by Congressional appropriation that the Service has not yet used. The Cumulative
Results of Operations amount reflects the net results of the Service’s operations over time.
The Service’s Net Position as of September 30, 2004 is approximately $3.54 billion, of
which approximately $502 million is unexpended appropriations and $3.04 billion is
cumulative results of operations. As of September 30, 2003, the Service’s net position was
$3.41 billion, with $498 million in unexpended appropriations and $2.91 billion in
cumulative results of operations.
III. U.S. Fish and Wildlife Service Financial Statements 23
III. U.S. Fish and Wildlife Service Financial Statements
The Service Financial Statements section covers the following areas:
A. Principal Financial Statements
B. Notes to Principal Financial Statements
C. Required Supplementary Information (RSI)
D. Required Supplementary Stewardship Information (RSSI)
III. U.S. Fish and Wildlife Service Financial Statements 24
A. Principal Financial Statements
U.S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidated Balance Sheet
as of September 30, 2004 and 2003
(dollars in thousands)
2004 2003
ASSETS (Note 2)
Intragovernmental Assets:
Fund Balance with Treasury (Note 3) $ 1,479,492 $ 1,276,656
Investments, Net (Notes 4 and 11) 1,816,233 1,870,014
Accounts and Interest Receivable, Net (Note 5) 26,410 21,596
Other
Advances and Prepayments 1,301 755
Total Intragovernmental Assets 3,323,436 3,169,021
Cash (Note 3) 107 116
Accounts and Interest Receivable, Net (Note 5) 10,700 10,832
General Property, Plant and Equipment, Net (Note 6) 900,160 862,436
Other
Advances and Prepayments 286 271
TOTAL ASSETS $ 4,234,689 $ 4,042,676
LIABILITIES (Note 8)
Intragovernmental Liabilities:
Accounts Payable $ 5,810 $ 12,191
Other
Accrued Payroll and Benefits 17,904 16,927
Advances and Deferred Revenue 680 681
Deferred Credits 9 6
Aquatic Resources Trust Fund Amounts Due to Others (Note 11) 420,896 389,762
Judgment Fund 15 0
Other Liabilities 1,926 1,926
Total Intragovernmental Liabilities 447,240 421,493
Public Liabilities:
Accounts Payable 80,068 69,159
Federal Employees Compensation Act Liability 58,821 62,153
Environmental Cleanup Costs (Note 8) 12,874 12,352
Other
Accrued Payroll and Benefits 66,586 57,614
Advances and Deferred Revenue 5,949 6,292
Deferred Credits 408 1,430
Contingent Liabilities (Note 8) 12 0
Other Liabilities 21,247 21
Total Public Liabilities 245,965 209,021
TOTAL LIABILITIES 693,205 630,514
Commitments and Contingencies (Notes 8 and 9)
Net Position
Unexpended Appropriations 501,981 498,236
Cumulative Results of Operations 3,039,503 2,913,926
TOTAL NET POSITION 3,541,484 3,412,162
TOTAL LIABILITIES AND NET POSITION $ 4,234,689 $ 4,042,676
The accompanying notes are an integral part of these financial statements
III. U.S. Fish and Wildlife Service Financial Statements 25
U. S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidated Statement of Net Cost
for the years ended September 30, 2004 and 2003
(dollars in thousands)
Resource
Protection
Resource
Use Recreation
Serving
Communities
2004
Total
Cost - Services Provided to the Public $ 1,475,285 $ 30,446 $ 462,784 $ 132,974 $ 2,101,489
Revenue Earned from the Public 45,716 414 8,021 673 54,824
Net Cost of Services to the Public 1,429,569 30,032 454,763 132,301 2,046,665
Cost - Services Provided to Federal Agencies 82,642 109 14,432 3,160 100,343
Revenue Earned from Federal Agencies 80,403 107 13,972 3,070 97,552
Net Cost of Services Provided to Federal Agencies 2,239 2 460 90 2,791
Net Cost of Operations (Note 14) $ 1,431,808 $ 30,034 $ 455,223 $ 132,391 $ 2,049,456
Sustainability
of Fish and
Wildlife Population
Habitat
Conservation
Public Use
and
Enjoyment
Partnerships
in Natural
Resources
2003
Total
Cost - Services Provided to the Public $ 599,277 $ 726,876 $ 173,326 $ 560,119 $ 2,059,598
Revenue Earned from the Public 16,492 34,553 4,330 17 55,392
Net Cost of Services to the Public 582,785 692,323 168,996 560,102 2,004,206
Cost - Services Provided to Federal Agencies 53,692 57,511 10,234 29 121,466
Revenue Earned from Federal Agencies 51,934 56,153 9,857 29 117,973
Net Cost of Services Provided to Federal Agencies 1,758 1,358 377 0 3,493
Net Cost of Operations (Note 14) $ 584,543 $ 693,681 $ 169,373 $ 560,102 $ 2,007,699
The accompanying notes are an integral part of these financial statements
III. U.S. Fish and Wildlife Service Financial Statements 26
U. S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidated Statement of Changes in Net Position
for the years ended September 30, 2004 and 2003
(dollars in thousands)
2004 2003
UNEXPENDED APPROPRIATIONS
Beginning Balance $ 498,236 $ 478,161
Budgetary Financing Sources
Appropriations Received, General Funds 1,121,014 1,072,465
Appropriations Transferred In/Out 94,718 84,346
Appropriations Used (1,198,544) (1,130,272)
Other Adjustments (13,443) (6,464)
Total Budgetary - Financing Sources 3,745 20,075
Ending Balance – Unexpended Appropriations $ 501,981 $ 498,236
CUMULATIVE RESULTS OF OPERATIONS
Beginning Balance $ 2,913,926 $ 2,880,832
Budgetary Financing Sources
Appropriations Used 1,198,544 1,130,272
Royalties Retained 6,456 2,909
Transfers In/Out without Reimbursement 165,382 143,939
Non-Exchange Revenue:
Tax Revenue 717,364 659,217
Donations and Forfeitures of Cash and Cash Equivalents 4,840 4,163
Other Non-Exchange Revenue 27,202 49,747
Other Budgetary Financing Sources 169 1,909
Other Financing Sources
Imputed Financing from Costs Absorbed by Others (Note 10) 50,488 44,277
Transfers In/Out without Reimbursement 4,588 4,360
Total Financing Sources 2,175,033 2,040,793
Net Cost of Operations (2,049,456) (2,007,699)
Ending Balance - Cumulative Results of Operations $ 3,039,503 $ 2,913,926
The accompanying notes are an integral part of these financial statements
III. U.S. Fish and Wildlife Service Financial Statements 27
U. S. Department of the Interior
U.S. Fish and Wildlife Service
Combined Statement of Budgetary Resources
for the years ended September 30, 2004 and 2003
(dollars in thousands)
2004 2003
Budgetary Resources:
Budget Authority:
Appropriations Received $ 2,103,220 $ 2,089,609
Net Transfers, Current Year Authority (94,440) (99,275)
Unobligated Balance:
Beginning of Fiscal Year 570,853 730,861
Net Transfers, Unobligated Balance, Actual 15,296 (4,700)
Spending Authority from Offsetting Collections:
Earned
Collected 139,063 138,815
Receivable from Federal Sources (3,631) 2,713
Change in Unfilled Customer Orders
Advance Received (344) (32,119)
Without Advance from Federal Sources 70,883 (5,537)
Subtotal: Spending Authority from Offsetting Collections 205,971 103,872
Recoveries of Prior Year Obligations 79,302 75,403
Permanently Not Available (Note 12) (16,323) (58,458)
Total Budgetary Resources $ 2,863,879 $ 2,837,312
Status of Budgetary Resources:
Obligations Incurred:
Direct $ 1,996,205 $ 2,140,323
Reimbursable 203,822 126,136
Total Obligations Incurred 2,200,027 2,266,459
Unobligated Balance:
Apportioned 660,255 569,286
Unobligated Balance not Available 3,597 1,567
Total Status of Budgetary Resources $ 2,863,879 $ 2,837,312
Relationship of Obligations to Outlays:
Obligations Incurred $ 2,200,027 $ 2,266,459
Obligated Balance, Net, Beginning of Fiscal Year 1,211,727 1,066,316
Obligated Balance, Net, End of Fiscal Year:
Accounts Receivable 27,493 31,124
Unfilled Customer Orders from Federal Sources 116,298 45,414
Undelivered Orders (1,256,824) (1,194,780)
Accounts Payable (106,575) (93,485)
Less: Spending Authority Adjustments (146,554) (72,579)
Outlays:
Disbursements 2,045,592 2,048,469
Collections (138,719) (106,697)
Subtotal: Outlays 1,906,873 1,941,772
Less: Offsetting Receipts (61,170) (62,743)
Net Outlays $ 1,845,703 $ 1,879,029
The accompanying notes are an integral part of these financial statements
III. U.S. Fish and Wildlife Service Financial Statements 28
U. S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidated Statement of Financing
for the years ended September 30, 2004 and 2003
(dollars in thousands)
2004 2003
Resources Used to Finance Activities:
Budgetary Resources Obligated:
Obligations Incurred $ 2,200,027 $ 2,266,459
Less: Spending Authority from Offsetting Collections/Adjustments (285,274) (179,276)
Obligations Net of Offsetting Collections and Adjustments 1,914,753 2,087,183
Less: Offsetting Receipts (61,170) (62,743)
Net Obligations 1,853,583 2,024,440
Other Resources:
Transfers In/Out Without Reimbursement 4,588 4,360
Imputed Financing From Costs Absorbed by Others (Note 10) 50,488 44,277
Net Other Resources Used to Finance Activities 55,076 48,637
Total Resources Used to Finance Activities 1,908,659 2,073,077
Resources Used to Finance Items Not Part of the Net Cost of Operations:
Change in Budgetary Resources Obligated for Goods, Services, and
Benefits Ordered but Not Yet Provided 7,932 (194,831)
Resources That Fund Expenses Recognized in Prior Periods (43) (50)
Budgetary Offsetting Collections and Receipts That Do Not Affect Net Cost of Operations:
Offsetting Receipts Not Part of the Net Cost of Operations 27,594 28,169
Resources That Finance the Acquisition of Assets (80,258) (51,706)
Other Resources or Adjustments to Net Obligated Resources That Do Not Affect Net Cost of Operations 10,958 2,231
Total Resources Used to Finance Items Not Part of the Net Cost of Operations (33,817) (216,187)
Total Resources Used to Finance the Net Cost of Operations 1,874,842 1,856,890
Components of Net Cost of Operations That Will Not Require or Generate Resources in the Current Period:
Components Requiring or Generating Resources in Future Periods:
Increase (Decrease) in Annual Leave Liability 2,336 3,343
Increase (Decrease) in Environmental and Disposal Liability 522 (2,843)
Other 18,259 5,264
Total Components of Net Cost of Operations That Will Require or Generate Resources in Future Periods 21,117 5,764
Components Not Requiring or Generating Resources:
Depreciation and Amortization 42,534 34,872
Components of Net Cost of Operations Related to Transfer Accounts Where
Budget Amounts Are Reported by Other Federal Entities (Note 13) 110,901 110,400
Other 62 (227)
Total Components of Net Cost of Operations That Will Not Require or Generate Resources 153,497 145,045
Total Components of Net Cost of Operations That Will Not Require or Generate Resources in the
Current Period
174,614 150,809
Net Cost of Operations $ 2,049,456 $ 2,007,699
The accompanying notes are an integral part of these financial statements
III. U.S. Fish and Wildlife Service Financial Statements 29
B. Notes to Principal Financial Statements
Note 1 - Summary of Significant Accounting Principles
A. Reporting Entity The Service is a Bureau within DOI, a cabinet-level agency of the Federal Government’s
Executive Branch. The Service is responsible for conserving, protecting, and enhancing
fish, wildlife and plants, and their habitats for the continuing benefit of the American
people. Authority over money or other budget authority made available to the Service, is
vested in the Service’s Director, who is responsible for administrative oversight and policy
direction of the Service. Accounts are maintained which restrict the use of money (or other
budget authority) for use consistent with the purposes and the time period authorized.
These accounts also provide assurance that obligations do not exceed authorized amounts.
B. Basis of Accounting and
Presentation
These financial statements have been prepared to report the financial position, net cost of
operations, changes in net position, budgetary resources, and financing of the Service as
required by the Chief Financial Officers Act of 1990, as amended by the Reports
Consolidation Act of 2000, and the Government Management Reform Act of 1994. The
financial statements have been prepared from the Service’s books and records in
accordance with the form and content for entity financial statements specified by OMB in
the OMB Bulletin 01-09, dated September 25, 2001, as required for FY 2004 and 2003.
Furthermore, the financial statements have been prepared in accordance with the Service’s
accounting policies summarized in this note.
The accounting records are maintained and these financial statements have been prepared
in accordance with generally accepted accounting principles (GAAP), as prescribed by the
Federal Accounting Standards Advisory Board (FASAB), recognized by the American
Institute of Certified Public Accountants (AICPA) as the entity to establish GAAP for the
Federal Government under Rule 203 of the AICPA’s Code of Professional Conduct. The
financial statements reflect both accrual and budgetary accounting transactions. Under the
accrual accounting method, revenue is recognized when earned and expenses are
recognized when a liability is incurred, without regard to receipt or payment of cash.
Budgetary accounting principles, by contrast, are designed to recognize the obligation of
funds according to legal requirements, which may be prior to the occurrence of accrual-based
transactions. The recognition of budgetary accounting transactions facilitates
compliance with legal constraints and controls over the use of Federal funds. The accounts
are maintained in accordance with the Department of the Treasury’s U.S. Standard
General Ledger.
The financial statements have been prepared from the books and records of the Service
except for certain amounts relating to Aquatic Resources Trust Fund (ARTF), which were
provided by the Department of the Treasury. Title 26 of the U.S. Code, Section 9602
designates the Department of the Treasury as manager of the ARTF, with overall
responsibility for the fund’s accounting and investment activities. Although the Secretary
of the Department of the Treasury is responsible by statute for the balances in the ARTF,
it is presented on the Service’s financial statements in accordance with the requirements of
the Statement of Federal Financial Accounting Concepts (SFFAC) Number 2, Entity and
Display. SFFAC Number 2 requires trust funds that finance multiple programs to be
reported by the entity with the preponderance of fund activity. This is also consistent with
OMB guidance for financial reporting, which cites SFFAS Number 7, Paragraph 87, as
applying to the ARTF. In FY 2004 the SFRA received approximately 79% of the ARTF
transfers.
III. U.S. Fish and Wildlife Service Financial Statements 30
The financial statements should be read with the realization that they are a component of
the U.S. Government, a sovereign entity. Liabilities cannot be liquidated without
legislation that provides resources and legal authority to do so. Intragovernmental assets
and liabilities arise from transactions with other Federal agencies.
The Service maintains accounts in three separate budgetary categories:
1. Resources management
2. Grant programs
3. Other funds
1. Resource Management
This category includes expenditure accounts arising from Congressional appropriations
or other authorizations to spend general revenue. The principal resource management
accounts are:
a. Resource Management, Operating
b. Resource Management, Federal Infrastructure Improvement
2. Grant Programs
The Service administers 14 budgetary accounts for grant programs established under
specific trust agreements and statutes. The major categories of grant programs are:
a. Sport Fish Restoration
b. Federal Aid in Wildlife Restoration
c. Other grant programs:
• Wildlife Conservation (two budgetary accounts)
• North American Wetlands Conservation
• State Wildlife Grants
• Tribal Wildlife Grants
• Landowner Incentive
• Cooperative Endangered Species Conservation Fund
• Private Stewardship Grants
• Multinational Species Conservation Fund (four budgetary accounts)
3. Other Funds
The Service also administers various other budgetary accounts, including:
a. Miscellaneous Permanent Appropriations - These funds are receipt funds
earmarked by law for a specific purpose, and do not require appropriation
language to use the receipts. These funds include:
• Operations/Maintenance - Quarters
• Lahontan Valley and Pyramid Lake Fish and Wildlife Fund
• Other Miscellaneous Appropriations
b. Construction
c. Land Acquisition
d. Contributed Fund Account
e. Commercial Salmon Fishery Capacity Reduction
f. Migratory Bird Conservation Account
g. Recreation Fee Demonstration Program
III. U.S. Fish and Wildlife Service Financial Statements 31
C. Fund Balance with the
Department of the Treasury
and Cash
The Service maintains all cash accounts with the Department of the Treasury except for
the imprest fund accounts. The funds with the Department of the Treasury include
appropriated, special receipt, and trust funds, which are available to pay current liabilities
and outstanding obligations. Cash receipts and disbursements of the Service are processed
by the Department of the Treasury, and the Service’s accounts are regularly reconciled
with those of the Department of the Treasury.
D. Investments in Treasury
Securities
The Service invests funds from the Federal Aid in Wildlife Restoration Fund (Treasury
Symbol 14X5029), the Multinational Species Conservation Fund (Treasury Symbol
14X1652), and the ARTF (Treasury Symbol 20X8147) in Federal Government Securities
that include marketable Treasury Securities and non-marketable par value or non-marketable
market-based securities issued by the Federal Investment Branch of the Bureau
of Public Debt. Par value securities are special issue bonds or certificates of indebtedness
that bear interest determined by legislation or the Department of the Treasury. Market-based
securities are Treasury securities that are not traded on any securities exchange, but
mirror the prices of marketable securities with similar terms. The Service intends to hold
these investments until maturity. Investments are valued at cost and adjusted for
amortization of premiums and discounts, if applicable. The premiums and discounts are
recognized as adjustments to interest income, utilizing the straight-line method. No
provision is made for unrealized gains or losses on these securities. Interest on investments
is accrued as it is earned.
The investments reported by the Service for ARTF (Treasury Symbol 20X8147) are
managed by the Department of the Treasury (see below, Note 1E Interest, and Taxes
Receivable). Although the Service has advisory authority for ARTF investment decisions,
the Department of the Treasury has legal responsibility for investing ARTF funds.
Consistent with authorizing legislation and the Department of the Treasury fiscal
investment policies, the Secretary of the Department of the Treasury invests such portion
of the ARTF balance deemed by the program agencies not necessary to meet current
withdrawals to cover program and related costs as defined by law. Such investments are in
non-marketable par value or non-marketable market-based securities as authorized by
legislation and are issued and redeemed by the Federal Investment Branch of the Bureau
of Public Debt, in the Department of the Treasury. These securities are held in the name of
the Secretary of the U.S. Department of the Treasury for the ARTF and interest in
investments is accrued as it is earned. The premiums and discounts are recognized as
adjustments to interest income, utilizing the effective interest method. Although funds
collected and deposited in the ARTF in any one fiscal year are available for investment
during the same fiscal year collected, they are not available for obligation that same year.
Thus, the use of such funds collected from a prior fiscal year is restricted until the
following fiscal year. Note 4 provides additional information on Service and ARTF
investments.
E. Accounts, Interest, and
Taxes Receivable
Receivables represent amounts owed to the Service by other Federal agencies and the
public, (with the exception of amounts owed to the ARTF and reported by the Service),
and include accounts receivable, interest receivable and taxes receivable. Accounts
receivable primarily arise from the provision of goods and services or from the levy of
fines and penalties resulting from the Service’s regulatory responsibilities. Taxes
receivable consist entirely of tax receipts owed to the ARTF, which serves as the funding
source for the SFRA, one of two trust funds maintained by the Service. Interest receivable
consists primarily of amounts earned but not yet received from Service investments and
ARTF investments reported by the Service. An allowance for doubtful accounts is
maintained to reflect uncollectible receivables from the public. The allowance amount is
estimated based on an average of prior year write-offs and an analysis of outstanding
accounts receivable. Federal accounts receivable are considered to be fully collectible.
III. U.S. Fish and Wildlife Service Financial Statements 32
F. Operating Materials and
Supplies
Operating materials and supplies consist of items such as lumber, sand, gravel, and other
items purchased in large quantities which will be consumed in future operations.
Operating materials and supplies are accounted for based on the purchase method. Under
this method, operating materials and supplies are expensed when purchased.
G. Property, Plant and
Equipment 1. General Property, Plant and Equipment (PP&E)
General PP&E consists of that property which is used in Service operations. General
PP&E includes buildings, structures, facilities and equipment used in the operation of
wildlife refuges, fish hatcheries, wildlife and fishery research centers, waterfowl
production areas, and administrative sites. In FY 2004, the Service made a prospective
change in the real property capitalization threshold from $50,000 to $100,000.
Capitalized buildings and structures have a cumulative acquisition cost $100,000 or
more. Buildings and structures are reported in the financial statements based on legal
ownership. Buildings are comprised of facilities owned by the Service, such as houses,
garages, shops, schools, laboratories, and other buildings. Structures and facilities
owned by the Service include powerhouses and pumping plants, structural and general
service facilities systems (e.g., drainage, plumbing, sewer, ventilating, water or heating
systems), ground and site improvements (e.g., roads and roadways, fences, parking
areas, sidewalks, sprinkler systems, yard drainage systems, or yard lighting systems),
bridges and trestles, dams and dikes, waterways and wells. Capitalized costs include
materials, labor, and overhead costs incurred during construction, attorney and architect
fees, and building permits. Permanent improvements to stewardship land, including
earthen structures, such as canals, dikes, levees, and dirt roads, are not capitalized.
Depreciation of buildings and other structures is recorded using the straight-line
method based on an estimated useful life of 10 to 40 years. Note 6 provides additional
information on the Service’s general PP&E.
Investments in improvements to buildings, structures and facilities leased by the
Service are capitalized if they exceed the capitalization threshold for real property.
Leasehold improvements are depreciated using the straight-line method over their
estimated useful life or the term of lease, whichever is less.
Capitalized equipment consists of those assets, other than buildings or other structures,
which have an estimated useful life of two or more years and an initial acquisition cost
of $15,000 or more. In FY 2004, the Service made a prospective change in the
capitalization threshold for capitalized equipment from $25,000 to $15,000.
Depreciation of equipment is recorded using the straight-line method based on the
estimated useful life of the respective assets of 5 to 20 years.
2. Construction Work in Progress (CWIP)
CWIP is used for the accumulation of the cost of construction or major renovation of
real property during the construction period. Costs are transferred out of CWIP when
they meet the criteria for capitalization.
3. Stewardship Property, Plant and Equipment (PP&E)
The SFFAS No. 6, Accounting for Property, Plant and Equipment, established various
categories to stewardship PP&E including stewardship land and heritage assets. A
portion of the Service’s stewardship lands have been reserved for wildlife refuges while
the remainder is managed for multiple use. Heritage assets are assets with historical,
cultural, or natural significance. In accordance with Federal accounting standards, the
Service assigns no financial value to the stewardship lands or heritage assets it
administers in its financial statements. Acquisition costs for stewardship assets, and any
permanent improvement to these assets are expensed in the accounting period incurred.
The Required Supplementary Stewardship Information (RSSI) section of this report
provides additional information concerning stewardship land and heritage assets.
III. U.S. Fish and Wildlife Service Financial Statements 33
4. Internal Use Software
Internal Use Software is capitalized at cost if the acquisition cost is $100,000 or more.
For commercial off-the-shelf software, the capitalized costs include the amount paid to
the vendor for the software; for contractor-developed software, it includes the amount
paid to a contractor to design, program, install, and implement software. Capitalized
costs for internally developed software include the full cost (direct and indirect)
incurred during the software development stage. The estimated useful life for
calculating amortization of software is 2 to 5 years using the straight-line method.
5. Leases
The Service leases certain PP&E for its operations. All of the Service’s leases are
considered operating leases in which the Service does not assume the risks of
ownership of the PP&E. Note 9 provides additional information on the Service’s
operating leases.
H. Seized and Forfeited
Property Property seized by or forfeited to the Service consists primarily of wildlife and wildlife
products. A smaller number of non-wildlife property items, such as guns, ammunition
or forensic evidence, is also seized by or forfeited to the Service. The Service is
responsible for safeguarding seized and forfeited property from the time of seizure
through the final disposition of the property. Methods of disposing of seized and
forfeited property include retaining the property in the Service for educational
purposes, transferring the property to other Federal entities, returning the property to
the owner, or disposing of the property through destruction, sale, donation or other
methods authorized by law. Property for which a legal market exists is reported at
appraised value or at values received at auction. Property that cannot be legally sold
(e.g., all or parts of migratory birds, bald and golden eagles, endangered or threatened
species, marine mammals, and species listed on Appendix I to the Convention on
International Trade in Endangered Species) is classified as “non-marketable” and has
no legal value. Note 7 provides additional information on seized and forfeited property.
I. Liabilities and Contingencies
A liability for Federal accounting purposes is a probable and measurable outflow or
other sacrifice of resources as a result of past transactions or events. Intragovernmental
liabilities arise from transactions with other Federal agencies. Liabilities Not Covered
by Budgetary Resources result from the receipt of goods or services, or the occurrence
of events, for which budgetary resources are not available. A liability cannot be paid
absent appropriation of funds by Congress, and there is no certainty that such budgetary
resources will be provided. The Federal Government, acting in its sovereign capacity,
can abrogate those liabilities that arise for reasons other than through contracts.
Liabilities of the ARTF are the amount of funds resulting from the original budget
authority for a fiscal year less the draw down of cash transferred during that same fiscal
year.
Contingent liabilities relate to conditions, situations, or circumstances where the
existence or amount of the liability cannot be determined with certainty pending the
outcome of future events. The Service recognizes contingent liabilities when a future
outflow or other sacrifice of resources is both measurable and probable.
III. U.S. Fish and Wildlife Service Financial Statements 34
J. Revenue and Other Financing
Sources
1. Appropriations
The Service receives the majority of the funding needed to support its programs
through appropriations. The Service receives annual, multi-year, and no-year
appropriations that may be used within statutory limits for operating expenses and
capital expenditures. Additional amounts are obtained through reimbursements for
services provided to public entities and other Federal agencies in accordance with
reimbursable agreements. Receipts from reimbursable agreements are recognized as
revenue when earned, and may be used to offset the cost of operations, including
indirect costs. The Combined Statement of Budgetary Resources presents information
about the resources appropriated to the Service.
2. Exchange and Non-exchange Revenue
The Service classifies revenue as either exchange or non-exchange revenue. Exchange
revenue derives from transactions in which both the Service and the other party receive
value. This revenue is presented in the Consolidated Statement of Net Cost. The non-exchange
revenue results from donations to the government and from the government’s
sovereign right to demand payment, including fines for violation of environmental
laws. This revenue is not considered as reductions of the cost of the Service’s
operations and is reported on the Consolidated Statement of Changes in Net Position.
Significant funding is made available to support Service programs from tax revenue,
which is recognized when earned. This tax revenue emanates from excise taxes,
collected from manufacturers of equipment used in hunting, fishing, sport shooting on
ranges, and on motorboat fuels, which are deposited into either the Wildlife Restoration
Fund or the ARTF.
3. Imputed Financing Sources
In certain instances, operating costs of the Service are paid from funds appropriated to
other Federal agencies. As an example, the Office of Personnel Management (OPM),
by law, pays certain costs of retirement programs; and certain legal judgments against
the Service are paid from the Judgment Fund maintained by the Department of the
Treasury. When costs identifiable to the Service and directly attributable to the
Service’s operations are paid by other agencies, the Service recognizes these amounts
as operating expenses and recognizes the imputed financing source on the Consolidated
Statement of Changes in Net Position to indicate the funding of Service operations by
other Federal agencies.
ARTF information is presented in the Service’s financial statements in accordance with
the requirements of SFFAC Number 2, Entity and Display. The sources of funding for
the ARTF include excise taxes levied on the sale of fishing tackle and equipment,
certain motorboat and small engine gasoline, and interest earned on invested trust
funds. These funds are used to make grants available to states for support projects that
restore, conserve, manage, protect, and enhance sport fish resources and coastal
wetlands and projects that provide for public use and benefit from sport fish resources.
The ARTF also provides funds for boating safety programs conducted by the U.S.
Coast Guard and costal wetlands initiatives conducted by the U.S. Army Corps of
Engineers. The Appropriations Act of 1951 authorized amounts equal to revenue
credited during the year to be used in the subsequent fiscal year. This inflow is
recorded as permanent appropriations to remain available until expended.
III. U.S. Fish and Wildlife Service Financial Statements 35
4. Deferred Revenue
Unearned revenue is recorded as deferred revenue until earned.
K. Personnel Compensation and
Benefits 1. Annual, Sick and Other Leave
Annual leave is accrued as it is earned. The accrual is reduced as leave is taken. Each
year, the balance in the accrued annual leave account is adjusted to reflect current pay
rates. To the extent current or prior year appropriations are not available to fund
annual leave, future funding sources will be used. Sick leave and other types of non-vested
leave are expensed as taken. Accrued benefits are included in
Intragovernmental Liabilities as accrued payroll and benefits.
2. Federal Employees Worker’s Compensation Program
The Federal Employees Compensation Act (FECA) authorizes income and medical
cost protection to covered Federal civilian employees injured on the job, to
employees who have incurred work-related occupational diseases, and to
beneficiaries of employees whose deaths are attributable to job-related injuries or
occupational diseases. The FECA program is administered by the U.S. Department of
Labor. Initially, FECA benefit claims for DOI employees are paid by the Department
of Labor, and subsequently reimbursed by the Interior. The Department of Labor is
responsible for calculating FECA liability of future compensation benefits for all
Federal agencies. The resulting liability is then distributed by the Department of
Labor to each benefiting agency.
The FECA liability consists of two components. The first component is based on
actual claims paid by the Department of Labor but not yet reimbursed by the Service.
The second component is the estimated liability for future benefit payments as a
result of past events. This liability includes death, disability, medical, and
miscellaneous costs.
3. Federal Employees Group Life Insurance Program (FEGLI)
The OPM administers the FEGLI program. The Service recognizes identified costs
for partial funding of insurance costs paid for by OPM as Service expenses. The
funding for insurance costs is reflected as imputed financing sources on the Statement
of Changes in Net Position.
Most Service employees are entitled to participate in the FEGLI program.
Participating employees can obtain various options of term life insurance. OPM
administers this program and is responsible for reporting FEGLI liabilities on its
financial statements.
4. Retirement Programs
The OPM administers the Federal retirement programs. The Service recognizes
identified costs for partial funding of retirement benefits paid for by OPM as Service
expenses. The funding for these retirement costs is reflected as imputed financing
sources on the Statement of Changes in Net Position.
Service employees participate in either the Civil Service Retirement System (CSRS)
or the Federal Employees Retirement System (FERS) defined benefit pension plans.
FERS went into effect January 1, 1987. FERS and Social Security automatically
cover most employees hired after December 31, 1983. Employees hired prior to
January 1, 1984 could elect either FERS and Social Security, or remain in CSRS.
III. U.S. Fish and Wildlife Service Financial Statements 36
FERS offers a savings plan to which the Service automatically contributes 1% of the
employee’s basic pay to the tax deferred Thrift Savings Plan and matches employee
contributions up to an additional 4% of basic pay. Employees could contribute up to
14% of their gross earnings to FERS for the year ended September 30, 2004, or 13%
of their gross earnings to the year ended September 2003. Employees could contribute
up to 9% of their gross earnings to CSRS for the year ended September 30, 2004, or
8% of their gross earnings for the year ended September 2003. CSRS employees
receive no matching contribution from the Service.
The Service is not responsible for and does not report CSRS or FERS assets,
accumulated plan benefits, or liabilities applicable to its employees. OPM, which
administers the plans, is responsible for, and reports these amounts.
L. Use of Estimates The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those estimates.
M. Statement of Financing The Statement of Financing is used to reconcile budgetary data with proprietary data. It
articulates the relationship between net obligations derived from an entity’s budgetary
accounts and the net cost of operations derived from the entity’s proprietary accounts by
identifying and explaining key differences between two numbers.
III. U.S. Fish and Wildlife Service Financial Statements 37
Note 2 - Assets Analysis
The assets reported in the financial statements include unrestricted entity assets,
restricted entity assets, and non-entity assets. Unrestricted entity assets are currently
available for use by the Service. Restricted entity assets are not currently available for
use by the Service, pending authorization by Congress. Non-entity assets are held by the
Service or the ARTF with no authority for use by the Service, and will be transferred to
other agencies at a future date. They include assets to be transferred to the Job Corps
program and also ARTF amounts scheduled for transfer to the U.S. Coast Guard and the
Corps of Engineers. Non-entity assets also include estimates of future transfers of
current ARTF funds to these two agencies. The following chart summarizes the
Service’s unrestricted entity, restricted entity, and non-entity assets:
Assets Analysis
as of September 30, 2004 and 2003
(dollars in thousands)
ENTITY
UNRESTRICTED
ENTITY
RESTRICTED NON-ENTITY
2004
TOTAL
ASSETS
Intragovernmental Assets:
Fund Balance with Treasury $ 1,454,550 $ 24,941 $ 1 $ 1,479,492
Investments, Net 631,241 640,576 544,416 1,816,233
Accounts and Interest Receivable, Net 18,283 8,127 0 26,410
Other - Advances and Prepayments 1,301 0 0 1,301
Total Intragovernmental Assets 2,105,375 673,644 544,417 3,323,436
Cash 107 0 0 107
Accounts and Interest Receivable, Net 10,700 0 0 10,700
General Property, Plant and Equipment, Net 900,160 0 0 900,160
Other - Advances and Prepayments 286 0 0 286
TOTAL ASSETS $ 3,016,628 $ 673,644 $ 544,417 $ 4,234,689
ENTITY
UNRESTRICTED
ENTITY
RESTRICTED NON-ENTITY
2003
TOTAL
ASSETS
Intragovernmental Assets:
Fund Balance with Treasury $ 1,254,583 $ 22,073 $ 0 $ 1,276,656
Investments, Net 733,847 622,522 513,645 1,870,014
Accounts and Interest Receivable, Net 21,323 273 0 21,596
Other - Advances and Prepayments 755 0 0 755
Total Intragovernmental Assets 2,010,508 644,868 513,645 3,169,021
Cash 116 0 0 116
Accounts and Interest Receivable, Net 10,832 0 0 10,832
General Property, Plant and Equipment, Net 862,436 0 0 862,436
Other - Advances and Prepayments 271 0 0 271
TOTAL ASSETS $ 2,884,163 $ 644,868 $ 513,645 $ 4,042,676
III. U.S. Fish and Wildlife Service Financial Statements 38
Note 3 - Fund Balance with Treasury and Cash
The Service’s fund balance with the Department of the Treasury is as follows:
Fund Balance with Treasury
as of September 30, 2004 and 2003
(dollars in thousands)
Fund Balance with Treasury by Fund Type
2004 2003
General Fund $ 494,046 $ 477,336
Special Fund 932,007 768,531
Trust Fund 53,022 29,353
Other Fund Types 417 1,436
Total $ 1,479,492 $ 1,276,656
Status of Fund Balance with Treasury
2004 2003
Unobligated Balance
Available $ 284,569 $ 282,089
Unavailable 242,403 215,904
Obligated Balance Not Yet Disbursed 952,520 778,663
Total Status of Fund Balances with Treasury $ 1,479,492 $ 1,276,656
Service cash as of September 30, 2004 and 2003 is $107,000 and $116,000 respectively.
Service Cash
as of September 30, 2004 and 2003
(dollars in thousands)
2004 2003
Imprest Fund $ 107 $ 116
Total Cash $ 107 $ 116
III. U.S. Fish and Wildlife Service Financial Statements 39
Note 4 - Investments, Net
Investments in non-marketable market-based Treasury securities consist of various bills
purchased through the Federal Investment Branch of the Bureau of Public Debt. The invested
funds consist of excise tax receipts from the Federal Aid in Wildlife Restoration Fund (Treasury
Symbol 14X5029), ARTF (Treasury Symbol 20X8147), and the Multi-National Species
Conservation Fund (Treasury Symbol 14X1652). The Service’s outstanding investments in
Treasury securities are as follows:
Investments, Net
as of September 30, 2004 and 2003
(dollars in thousands)
Investment Type Cost
Amortized
(Premium)/
Discount
Investments,
Net
Market Value
2004
U.S. Treasury Securities
14X5029 Non-Marketable, Market-Based $ 363,832 $ (1,073) $ 362,759 $ 363,614
14X1652 Non-Marketable, Market-Based 0 0 0 0
Total Entity 363,832 (1,073) 362,759 363,614
ARTF 20X8147 Non-Marketable, Market-Based 1,455,389 (4,045) 1,451,344 1,446,897
Total Non-Entity 1,455,389 (4,045) 1,451,344 1,446,897
Total U.S. Treasury Securities 1,819,221 (5,118) 1,814,103 1,810,511
Accrued Interest 2,130 0 2,130 0
Total Investments $ 1,821,351 $ (5,118) $ 1,816,233 $ 1,810,511
Investment Type Cost
Amortized
(Premium)/
Discount
Investments,
Net
Market Value
2003
U.S. Treasury Securities
14X5029 Non-Marketable, Market-Based $ 453,752 $ (1,083) $ 452,669 $ 453,944
14X1652 Non-Marketable, Market-Based 1,054 0 1,054 1,054
Total Entity 454,807 (1,083) 453,723 454,998
ARTF 20X8147 Non-Marketable, Market-Based 1,418,171 (2,359) 1,415,812 1,416,278
Total Non-Entity 1,418,171 (2,359) 1,415,812 1,416,278
Total U.S. Treasury Securities 1,872,978 (3,443) 1,869,535 1,871,276
Accrued Interest 479 0 479 0
Total Investments $ 1,873,457 $ (3,443) $ 1,870,014 $ 1,871,276
III. U.S. Fish and Wildlife Service Financial Statements 40
Note 5 - Accounts, Interest, and Taxes Receivable, Net
Accounts and interest receivable consist of amounts owed the Service by other Federal
agencies and the public and are recognized primarily when the Service performs
reimbursable services or sells goods. Accounts receivable also includes those funds,
including taxes receivable, to be deposited in the ARTF. Interest receivable consists of
monies earned but not yet received and primarily derive from investments disclosed in
Note 4. Accounts and Interest Receivable consist of the following:
Accounts Receivable
as of September 30, 2004 and 2003
(dollars in thousands)
Accounts Receivable from Federal Agencies
2004 2003
Accounts Receivable from Federal Agencies
Current $ 25,321 $ 20,053
1 - 180 Days Past Due 116 628
181 - 365 Days Past Due 56 78
Over 1 Year Past Due 173 208
Total Billed Accounts Receivable - Federal 25,666 20,967
Unbilled Accounts Receivable 744 629
Total Accounts Receivable - Federal $ 26,410 $ 21,596
Accounts Receivable from the Public
2004 2003
Accounts Receivable from the Public
Current $ 10,775 $ 10,841
1 - 180 Days Past Due 37 66
181 - 365 Days Past Due 34 21
Over 1 Year Past Due 66 361
Total Billed Accounts Receivable - Public 10,912 11,289
Unbilled Accounts Receivable 7 12
Total Accounts Receivable - Public 10,919 11,301
Allowance for Doubtful Accounts (219) (469)
Total Accounts Receivable - Public Net of Allowance $ 10,700 $ 10,832
Change in Allowance for Bad Debts - Public 2004 2003
Allowance for Doubtful Accounts, Beginning $ 469 $ 544
Deletions (250) (75)
Allowance for Bad Debts - Public $ 219 $ 469
III. U.S. Fish and Wildlife Service Financial Statements 41
Note 6 - General Property, Plant and Equipment (PP&E), Net
Net General PP&E owned by the Service consists of the following:
General Property, Plant and Equipment (PP&E), Net
as of September 30, 2004 and 2003
(dollars in thousands)
Acquisition Accumulated Net
Cost Depreciation 2004
Land and Land Improvements $ 10,571 $ 0 $ 10,571
Buildings 575,766 149,479 426,287
Structures and Facilities 474,776 203,037 271,739
Leasehold Improvements 2,585 209 2,376
Construction in Progress - General 67,806 0 67,806
Equipment, Vehicles, and Aircraft 284,389 164,268 120,121
Internal Use Software:
In Use 1,454 194 1,260
Total Property, Plant, and Equipment $ 1,417,347 $ 517,187 $ 900,160
Acquisition Accumulated Net
Cost Depreciation 2003
Land and Land Improvements $ 10,570 $ 0 $ 10,570
Buildings 501,563 140,161 361,402
Structures and Facilities 448,735 189,111 259,624
Leasehold Improvements 1,926 0 1,926
Construction in Progress - General 114,420 0 114,420
Equipment, Vehicles, and Aircraft 263,861 150,436 113,425
Internal Use Software:
In Development 1,069 0 1,069
Total Property, Plant, and Equipment $ 1,342,144 $ 479,708 $ 862,436
III. U.S. Fish and Wildlife Service Financial Statements 42
Note 7 - Seized and Forfeited Property
Seized and forfeited property is recorded in case files maintained in the Service’s Law
Enforcement Management Information System (LEMIS 2000). The Service does not
assign a financial value to, or recognize for purposes of its financial statements, property
seized by or forfeited to the Service that cannot be sold due to legal restrictions. Such
property is typically wildlife or wildlife parts that can be donated to schools, aquaria,
museums, or zoos for educational or scientific purposes or destroyed. Seized or forfeited
property that can be sold legally is valued by individual agents based on their best
professional estimate, through declarations, or through evaluating fair market value.
Values of property seized by or forfeited to the Service reported below are not accrued on
the financial statements as the property held by the Service cannot be legally sold and,
therefore, does not have marketable value. Seized and forfeited property cases and
estimated values, including additions and dispositions, are as follows:
Seized and Forfeited Property
for the years ended September 30, 2004 and 2003
(dollars in thousands)
Balance
10/01/2003
Additions Dispositions Balance
09/30/2004
# Cases Market
Value
# Cases Market
Value
# Cases Market
Value
# Cases Market
Value
Seized Property
Wildlife 1,014 $ 2,676 1,919 $ 2,464 1,819 $ 2,234 1,114 $ 2,906
Non-Wildlife 201 202 314 136 304 35 211 303
Forfeited Property
Wildlife 1,004 2,671 1,310 2,093 1,211 1,865 1,103 2,899
Non-Wildlife 200 202 271 127 263 26 208 303
Balance
10/01/2002
Additions Dispositions Balance
09/30/2003
# Cases Market
Value
# Cases Market
Value
# Cases Market
Value
# Cases Market
Value
Seized Property
Wildlife 935 $ 4,700 1,640 $ 1,102 1,561 $ 3,126 1,014 $ 2,676
Non-Wildlife 150 24 181 186 130 8 201 202
Forfeited Property
Wildlife 928 4,698 930 856 854 2,883 1,004 2,671
Non-Wildlife 150 24 131 176 81 0 200 202
III. U.S. Fish and Wildlife Service Financial Statements 43
Note 8 - Liabilities Analysis
Liabilities are claims against the Service by other Federal and non-Federal entities for
measurable past transactions or events. Certain types of liabilities are not covered by
budgetary resources and require Congressional action before budgetary resources can be
provided. Service liabilities are detailed below:
Liabilities Analysis
as of September 30, 2004 and 2003
(dollars in thousands)
Covered by Budgetary
Resources
Not Covered by Budgetary
Resources
Current Non-Current Current Non-Current 2004 Total
Intragovernmental Liabilities:
Accounts Payable $ 5,810 $ 0 $ 0 $ 0 $ 5,810
Other
Accrued Payroll and Benefits 4,571 0 4,570 8,763 17,904
Advances and Deferred Revenue 680 0 0 0 680
Deferred Credits 0 0 9 0 9
Aquatic Resources Amounts Due to Others 0 0 0 420,896 420,896
Judgment Fund 0 0 0 15 15
Other Liabilities 0 0 0 1,926 1,926
Total Intragovernmental Liabilities 11,061 0 4,579 431,600 447,240
Public Liabilities:
Accounts Payable 80,068 0 0 0 80,068
Federal Employees Compensation Act Liability 0 0 0 58,821 58,821
Environmental Cleanup Costs 0 0 0 12,874 12,874
Other
Accrued Payroll and Benefits 18,596 0 0 47,990 66,586
Advances and Deferred Revenue 5,949 0 0 0 5,949
Deferred Credits 0 0 0 408 408
Contingent Liabilities 0 0 0 12 12
Other Liabilities 0 0 21,247 0 21,247
Total Public Liabilities 104,613 0 21,247 120,105 245,965
Total Liabilities $ 115,674 $ 0 $ 25,826 $ 551,705 $ 693,205
Covered by Budgetary
Resources
Not Covered by Budgetary
Resources
Current Non-Current Current Non-Current 2003 Total
Intragovernmental Liabilities:
Accounts Payable $ 12,191 $ 0 $ 0 $ 0 $ 12,191
Other
Accrued Payroll and Benefits 3,970 0 4,457 8,500 16,927
Advances and Deferred Revenue 681 0 0 0 681
Deferred Credits 0 0 6 0 6
Aquatic Resources Amounts Due to Others 0 0 0 389,762 389,762
Other Liabilities 0 0 0 1,926 1,926
Total Intragovernmental Liabilities 16,842 0 4,463 400,188 421,493
Public Liabilities:
Accounts Payable 69,159 0 0 0 69,159
Federal Employees Compensation Act Liability 0 0 0 62,153 62,153
Environmental Cleanup Costs 0 0 0 12,352 12,352
Other
Accrued Payroll and Benefits 11,959 0 0 45,655 57,614
Advances and Deferred Revenue 6,292 0 0 0 6,292
Deferred Credits 0 0 0 1,430 1,430
Contingent Liabilities 0 0 0 0 0
Other Liabilities 0 0 0 21 21
Total Public Liabilities 87,410 0 0 121,611 209,021
Total Liabilities $ 104,252 $ 0 $ 4,463 $ 521,799 $ 630,514
III. U.S. Fish and Wildlife Service Financial Statements 44
Environmental Cleanup
Liabilities
The Service operates its environmental cleanup program in accordance with the
requirements of the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response, Compensation, and Liability Act and cleanup regulations
established by the Environmental Protection Agency. Environmental liabilities for the
Service are associated with the costs of remediating hazardous waste and landfills existing
within units of the NWRS and the National Fish Hatcheries System (NFHS) and for which
the government is legally liable. In accordance with accounting principles generally
accepted in the U.S., the Service has recorded in its financial statements a liability for
remediating contamination on Service land of $13 million and $12 million as of
September 30, 2004 and 2003, respectively. The Service believes that a reasonable
estimate of the additional potential liabilities for remediation efforts ranges between $0
and $98 million as of September 30, 2004. The estimated range of additional potential
liabilities as of September 30, 2003 was between $0 and $93 million.
The cost range represents the total estimated cost that may be borne by the Service for
cleanup on Service lands, based on information available to the Service at this time.
Liability estimates are based on accounting definitions of liability, as distinct from legal
liability. As such, these estimates may not be construed as an indication that the Service
would admit or would be determined to be legally liable for any or all of such costs. These
cases include sites on lands obtained by the Service through donation, acquisition or
transfer from other Federal agencies. Cost estimates are based on site investigations and
the expected degree and type of contamination probable and reasonably possible at these
sites. Where possible, cost estimates are included for conducting site investigations and for
conducting monitoring actions needed to assess the efficacy of cleanup. The Service’s
methods for estimating these liabilities include quotes from private firms or government
agencies that have worked on the sites, projected planning figures based on related
projects, and best engineering judgment. Changes in cleanup cost estimates are developed
in accordance with departmental policy, which addresses systematic processes for cost
estimating and places added emphasis on development and retention of supporting
documentation. Changes in cleanup cost estimates are based on progress made in, and
revision of, the cleanup plans, assuming current technology, laws, and regulations. There
is not a broad application of any particular inflation or deflation factors to prior estimates.
There are no material changes in total estimated cleanup costs that are due to changes in
law and technology.
Contingent Liabilities There are two claims pending administrative action against the Service for which
payments have been deemed probable and the amount of potential loss is estimated at
$12,000. In accordance with accounting principles generally accepted in the U.S., the
Service has recorded $12,000 as a liability as of September 30, 2004. The Service
estimates a range of potential liabilities for other claims where the likelihood of an
unfavorable outcome is reasonably possible, which is between $51,000 and $4.6 million as
of September 30, 2004. The following tables present accrued and potential liabilities
related to estimated cleanup costs and contingent liabilities:
III. U.S. Fish and Wildlife Service Financial Statements 45
Contingent Liabilities
as of September 30, 2004 and 2003
(dollars in thousands)
Accrued Liabilities
2004 2003
Estimated Cleanup Cost $ 12,874 $ 12,352
Contingent Liabilities 12 0
Total Environmental and Contingent Liabilities - Accrued $ 12,886 $ 12,352
Additional Potential Liabilities
2004 2003
Lower End of
Range
Upper End of
Range
Lower End of
Range
Upper End of
Range
Estimated Cleanup Cost $ 0 $ 97,983 $ 0 $ 93,092
Contingent Liabilities 51 4,600 1,630 2,430
Total Environmental and Contingent Liabilities - Potential $ 51 $ 102,583 $ 1,630 $ 95,522
Liabilities Involving
Government-Related Events
During August and September 2004, hurricanes and other storms caused significant
damage to numerous units of NWRS, NFHS, and other facilities primarily in the
southeastern U.S. Funding for most of the estimated repair costs was included in a
supplemental appropriation (Public Law 108-324) that was enacted October 13, 2004.
Most of the costs are for removal of debris, repairs to permanent land improvements and
other stewardship assets, and repairs to noncapitalized or fully depreciated assets. A
liability of $21 million was established for these costs. Certain capitalized assets were
completely destroyed or affected to such an extent to necessitate adjustment to recorded
values. The Service’s net property, plant and equipment was reduced by less than $2
million to account for destroyed or impaired assets.
III. U.S. Fish and Wildlife Service Financial Statements 46
Note 9 - Operating Leases
Most of the Service’s leased facilities are rented from the General Services Administration
(GSA), which charges rent that is intended to approximate commercial rental rates. The
Service includes the estimated rental payments to GSA in the following table. For
federally owned facilities, the Service either does not execute an agreement with GSA, or
enters into cancelable agreements, some of which do not have a formal lease expiration
date. The Service can vacate these properties after giving 120 to 180 days notice of intent
to vacate; however, the Service normally occupies these properties for an extended period
of time with little variation from year to year. For non-federally owned property an
occupancy agreement is generally executed, according to standard contract principles.
Estimates for real and personal property leases are based on an annual inflation factor of
1.7% for FY 2005 and 1.5% thereafter.
The estimates for personal property represent the cost of leasing GSA vehicles. The terms
for GSA leases frequently exceed one year, although a definite lease period is usually not
specified. For purposes of disclosing future operating payments, GSA personal property
leases are included from 2005 through 2009. The current lease costs are based on the
vehicles leased by the Service from GSA as of September 2004. The Service’s estimates
are based on an annual inflation factor of 1.7% for FY 2005 and 1.5% for FY 2006
through 2009.
The aggregate estimates for the Service’s: (1) future payments due under non-federal or
non-cancelable operating leases; and (2) estimated real property rent payments to GSA
and other Federal entities are as follows:
Future Operating Lease Payments
(dollars in thousands)
Real Property Property Personal
FY Federal Non-Federal Federal Non-Federal Total
2005 $ 46,593 $ 1,136 $ 2,781 $ 0 $ 50,510
2006 44,513 844 2,822 0 48,179
2007 42,593 399 2,865 0 45,857
2008 41,330 279 2,908 0 44,517
2009 36,853 43 2,951 0 39,847
Thereafter 83,683 737 0 0 84,420
Total Future
Lease Payments $ 295,565 $ 3,438 $ 14,327 $ 0 $ 313,330
III. U.S. Fish and Wildlife Service Financial Statements 47
Note 10 - Imputed Financing Sources
Imputed financing sources primarily represent costs that have been incurred by the Service
but budgeted by another entity. The imputed cost of approximately $50 million for the
year ended September 30, 2004 presented in the Service’s accompanying financial
statements reflects the recorded costs (e.g., employee benefit costs) that were financed by
budgetary resources of the OPM. For the year ended September 30, 2003, imputed
financing sources totaled approximately $44 million. The Service recognizes the actuarial
present value of pensions and other retirement benefits for its employees during their
active years of service. Imputed costs also include services that are received by the Service
at less than full cost. The U.S. Department of the Treasury made no Judgment Fund
payments on behalf of the Service in FY 2004 and 2003.
III. U.S. Fish and Wildlife Service Financial Statements 48
Note 11 - Dedicated Collections
The Service’s financial statements reflect balances in three dedicated collections accounts: ARTF,
the Federal Aid in Wildlife Restoration account, and the SFRA.
The ARTF receives funding from excise tax receipts collected from manufacturers of equipment
used in fishing, hunting, and sport shooting, and on motorboat fuels. It provides funding to the
Service’s SFRA, the U.S. Coast Guard Boat Safety Program and the Corps of Engineers Coastal
Wetlands Program. The SFRA is authorized to use the excise tax revenue received to provide
assistance to the 50 States, Puerto Rico, Guam, and the U.S. Virgin Islands, the Northern Mariana
Islands, American Samoa, and the District of Columbia to carry out projects to restore, enhance, and
manage sport fishery resources. Receipts collected into this account are permanently appropriated
for use in the fiscal year following collection. Excise tax revenue distributed to the Service on
behalf of the Coast Guard and Corps of Engineers are immediately transferred out to those entities.
The Federal Aid in Wildlife Restoration Account (the Pittman-Robertson Wildlife Restoration Act)
receives funding from excise taxes on sporting firearms, handguns, ammunition, and archery
equipment. It provides Federal assistance to the 50 States, Puerto Rico, Guam, and the U.S. Virgin
Islands, the Northern Mariana Islands, and American Samoa for projects to restore, enhance, and
manage wildlife resources, and to conduct State hunter education programs. The Act authorizes
receipts for permanent indefinite appropriations to the Service for use in the fiscal year following
collection. Funds not used by the states after two years are reverted to the Service for carrying out
the provisions of the Migratory Bird Conservation Act.
The distribution of funds relating to these accounts represents an inflow of revenue as a result of
intragovernmental transfers. The table below reflects the Service’s summarized information:
Dedicated Collections
as of and for the years ended September 30, 2004 and 2003
(dollars in thousands)
Aquatic
Resources
Trust Fund
Wildlife
Restoration
Sport Fish
Restoration 2004 Total
Aquatic
Resources
Trust Fund
Wildlife
Restoration
Sport Fish
Restoration 2003 Total
ASSETS
Fund Balance with Treasury $ 24,941 $ 120,209 $ 14,255 $ 159,405 $ 22,074 $ 18,099 $ (6,938) $ 33,235
Investments 1,451,344 364,889 0 1,816,233 1,415,812 453,148 0 1,868,960
Accounts Receivable 8,127 0 921,021 929,148 273 1 883,688 883,962
Other Assets 0 107 0 107 0 123 0 123
TOTAL ASSETS $ 1,484,412 $ 485,205 $ 935,276 $ 2,904,893 $ 1,438,159 $ 471,371 $ 876,750 $ 2,786,280
LIABILITIES
Aquatic Resources Amounts Due to FWS $ 920,993 $ 0 $ 0 $ 920,993 $ 883,661 $ 0 $ 0 $ 883,661
Aquatic Resources Amounts Due to Coast Guard 0 0 68,351 68,351 0 0 62,515 62,515
Aquatic Resources Amounts Due to Corps of Engineers 0 0 352,546 352,546 0 0 327,164 327,164
Aquatic Resources Amounts Due to Others 0 0 0 0 83 0 0 83
Accounts Payable 0 14,613 22,991 37,604 0 17,073 22,284 39,357
Other Liabilities 0 781 988 1,769 0 624 1,348 1,972
TOTAL LIABILITIES 920,993 15,394 444,876 1,381,263 883,744 17,697 413,311 1,314,752
TOTAL NET POSITION 563,419 469,811 490,400 1,523,630 554,415 453,674 463,439 1,471,528
TOTAL LIABILITIES AND NET POSITION $ 1,484,412 $ 485,205 $ 935,276 $ 2,904,893 $ 1,438,159 $ 471,371 $ 876,750 $ 2,786,280
CHANGE IN NET POSITION
Net Position, Beginning of Fiscal Year $ 554,415 $ 453,674 $ 463,439 $ 1,471,528 $ 538,979 $ 490,490 $ 462,309 $ 1,491,778
Change in Net Position:
Non-exchange Revenue
Taxes 455,828 238,807 0 694,635 426,377 214,337 0 640,714
Investment Interest and Other 16,551 10,451 177 27,179 40,949 8,745 358 50,052
Transfers In/Out without Reimbursement (463,375) (173) 345,405 (118,143) (451,890) (243) 329,816 (122,317)
Program Expenses 0 (232,948) (318,621) (551,569) 0 (259,655) (329,044) (588,699)
Net Position, End of Fiscal Year $ 563,419 $ 469,811 $ 490,400 $ 1,523,630 $ 554,415 $ 453,674 $ 463,439 $ 1,471,528
III. U.S. Fish and Wildlife Service Financial Statements 49
Note 12 - Combined Statement of Budgetary Resources
Apportionments for the Service fall into OMB Category B, which apportions amounts by
activity, project, or object. Apportionment Categories of Obligations Incurred include:
1. Direct and Reimbursable Obligations Incurred
2. Amounts Apportioned and Exempt from Apportionment
3. Obligations by Apportionment Category
Each of the above categories is presented in the following table:
A. Permanent Indefinite Appropriations
As of September 30, 2004, the Service had 12 permanent indefinite appropriations which are
primarily utilized to administer endangered species and wildlife and sport fish restorations
grants to states and other non-Federal entities, and to fund land acquisition for NWRS. These
funds do not require annual appropriation action by Congress as they are subject to the
authorities of permanent law and are available indefinitely. FY 2004 total budgetary
resources were $950,140,423, which comprise $684,084,489 in obligations incurred and an
available balance of $266,055,934. Comparatively, at the end of FY 2003 total budgetary
resources were about $948,308,893, which comprised approximately $715,854,624 in
obligations incurred and an available balance of about $232,454,269.
Obligations by Apportionment Category
for the years ended September 30, 2004 and 2003
(dollars in thousands)
Apportioned
Not Subject to
Category A Category B Apportionment 2004 Total
Obligations Incurred:
Direct $ 0 $ 1,996,206 $ 0 $ 1,996,206
Reimbursable 0 203,821 0 203,821
Total Obligations Incurred $ 0 $ 2,200,027 $ 0 $ 2,200,027
Apportioned
Not Subject to
Category A Category B Apportionment 2003 Total
Obligations Incurred:
Direct $ 0 $ 2,140,323 $ 0 $ 2,140,323
Reimbursable 0 126,136 0 126,136
Total Obligations Incurred $ 0 $ 2,266,459 $ 0 $ 2,266,459
III. U.S. Fish and Wildlife Service Financial Statements 50
B. Legal Arrangements Affecting Use of Unobligated Balances
The Service’s FY 2004 operating and grant programs were financed and its financial activity
summarized under 9 general fund accounts, 17 special fund accounts, and 2 trust fund
accounts, all with distinct Treasury Fund Symbols. All of the Service’s funding needs are
authorized in a number of appropriation laws, which prescribe a combination of current and
permanent authority. Each of the Service’s funds was appropriated under OMB
apportionment Category B and was subject to annual apportionment. Current authority
includes funding that is legislatively reauthorized each fiscal year, while permanent authority
is issued once and remains in effect in future fiscal years until reauthorized or rescinded. The
majority of the Service’s 28 fund accounts are classified as no-year, which allows the
Service to use its fiscal year-end unobligated resources remaining in these accounts to
execute its operating and grant programs in subsequent fiscal years.
The Service’s operating account is classified as a multiyear appropriation, whose budget
authority is available for two years. The FY 2003/2004 Resource Management appropriation
expired at the end of FY 2004. Expired, not cancelled funds, are resources that are available
for the next 5 fiscal years to settle obligations arising in the year the funds were enacted, but
are not available for new business. These expired resources are reported as “Permanently
Not Available.”
C. Differences Between Amounts Reported in the Statement of Budgetary
Resources and Amounts Reported in the Budget of the U.S. Government
The Statement of Budgetary Resources (SBR) has been prepared to coincide with the
amounts shown in the FY 2005 President’s Budget (Budget of the U.S. Government). The
President’s Budget with the actual FY 2003 amounts was released on February 3, 2004 and
can be found at the OMB Web site: http://www.whitehouse.gov/omb. The actual amounts for
FY 2004 are expected to be released in February 2005.
The differences between the FY 2003 SBR and the President’s Budget primarily relate to:
1. Unobligated Balances Start of Year and Spending Authority from Offsetting
Collections reflect differences between the SBR and the President’s Budget which are
attributed to the fact that the SBR includes expired appropriations in Resource
Management for $1.6 million and the President’s Budget does not.
2. A small difference exists due to the cancellation of expired accounts in Resource
Management for $75,000 out of $58 million. This amount is below the reporting
threshold used for the President's Budget.
3. The President’s Budget reflects a total of $50 million on line 40.38 which crosswalks
to line 5, “Temporarily Not Available” on the SBR. The Service reflects the same
resources on line 6, “Permanently Not Available” on the SBR. The resources
(representing $40 million in Budget Account 14-5496, State Wildlife Grants and $10
million in Budget Account 14-5495, the Landowner Incentive Program), were
rescinded during FY 2003. Accordingly after rescission, the Service identified those
budgetary resources as “Permanently Not Available.”
That same year OMB designated the resources as available for future return to the
National Parks Service (NPS) Land and Water Conservation Fund for subsequent
allocation. Although the budgetary resources remain within the DOI as “Temporarily
Not Available” to NPS, the Service reflects the impact of its 2003 rescission.
Reconciliation Steps: No adjustments were made to the Service’s accounting system, the
Federal Financial System (FFS), after the Federal Agencies’ Centralized Trial-Balance
System II (FACTS II) cutoff date.
III. U.S. Fish and Wildlife Service Financial Statements 51
Note 13 - Consolidated Statement of Financing – Allocation Transfers
Allocation transfers are the amounts of budget authority and other resources transferred to
other Federal agencies to carry out the purposes of the parent account. Within DOI, the
Service is a recipient of allocation transfers from the Bureau of Land Management
(Wildland Fire Management and Central Hazardous Materials), and the Office of the
Secretary (Natural Resources Damage Assessment). Non-Interior transferals are the
Department of Transportation, the Department of Labor, the Department of Agriculture,
and the General Services Administration.
OMB Circular A-11, “Preparation, Submission, and Execution of the Budget,” requires
transferor (parent) accounts to report their allocation agency’s transactions as part of their
SBR, while the recipient of allocation transfers reports the proprietary activity on its
Balance Sheet, Statement of Net Cost of Operations, and Statement of Changes in Net
Position. This process creates a reconciling difference titled “Components of Net Cost of
Operations related to Transfer Accounts where Budget Accounts are reported by Other
Federal Entities on the Statement of Financing.”
The following table presents information on trading partners, or entity performing the
transfer, the purpose of transfer, and the amount of reconciling differences on the
Statement of Financing.
Consolidated Statement of Financing - Allocation Transfers
for the years ended September 30, 2004 and 2003
(dollars in thousands)
Trading Partner Nature and Purpose of Transfer
2004 Reconciling
Difference
2003 Reconciling
Difference
Transfer of Appropriations where the Service is the recipient (i.e., child) and therefore
reports the proprietary activity, but not the budgetary activity:
Department of Transportation - Highway Trust Fund Federal Aid for maintenance of
Department Highways $ 7,493 $ 11,701
Department of Labor - Job Corps Employee Training services 11,927 11,576
Department of Agriculture Forest Pesticide Programs 199 147
Department of the Interior - Bureau of Land Management Wildland Fire Management Fund
Central Hazardous Fund 77,478 74,384
General Services Administration Real Property Relocation 0 10
Department of the Interior - Office of the Secretary Natural Resources and Damage
Assessment 13,804 12,582
Reconciling Difference of appropriations transferred to or from other Federal Agencies $ 110,901 $ 110,400
III. U.S. Fish and Wildlife Service Financial Statements 52
Note 14 - Consolidating Statement of Net Cost
The Government Performance and Results Act (GPRA) requires that Federal agencies
formulate strategic plans, identify major mission goals, and report performance and costs
related to these goals. Under GPRA, strategic plans are to be revised and updated every
three years. Accordingly, the Service updated its strategic plan in FY 2004 and replaced
the four mission goals and reporting responsibility segments with the new GPRA mission
goals established for DOI. The mission goals applicable for FY 2004 are: Resource
Protection, Resource Use, Recreation, Serving Communities, and Management
Excellence. These mission goals for the Service are supported by thirteen bureau-level end
outcomes.
The GPRA also requires that the Service report costs for the goals identified in the
strategic plan. Accordingly, the Service presented earned revenue and gross costs in FY
2004 by the mission goals in the current Strategic Plan. Earned revenue and gross costs for
FY 2003 were presented by the goals in the FY 2001 Strategic Plan. As a result, the FY
2004 Consolidated Statement of Net Cost is not comparable to the FY 2003 Consolidated
Statement of Net Cost.
The Service presented costs associated with acquiring, constructing, and renovating
heritage assets which were $35,000 and $31,000 for the years ended September 30, 2004
and 2003, respectively. The costs associated with acquiring and improving stewardship
lands were $85 million and $122 million for the years ended September 30, 2004 and
2003, respectively.
The supporting statements on the following pages present the Service’s cost of services
provided, earned revenue, and net cost of operations by mission goal and end outcome for
FY 2004, and by mission goal and reporting responsibility segment for FY 2003:
III. U.S. Fish and Wildlife Service Financial Statements 53
U.S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidating Statement of Net Cost
for the year ended September 30, 2004
(dollars in thousands)
Endangered
Species
Fisheries and
Habitat
Conservation
Servicewide
Support
International
Affairs
Law
Enforcement
Migratory
Birds and
State Programs
National Wildlife
Refuge System
Wildlife and
Sport Fish
Restoration Eliminations Total
Resource Protection
Cost -Services provided to the Public $ 221,654 $ 223,556 $ 255,961 $ 14,634 $ 60,289 $ 68,809 $ 274,134 $ 356,248 $ 0 $ 1,475,285
Revenue Earned from the Public 341 18,247 15,905 550 7,352 269 3,052 0 0 45,716
Net Cost of Services to the Public 221,313 205,309 240,056 14,084 52,937 68,540 271,082 356,248 0 1,429,569
Cost - Services provided to Federal Agencies 8,089 54,511 10,134 0 127 237 10,367 0 (823) 82,642
Revenue Earned from Federal Agencies 7,953 53,238 9,605 0 123 235 10,072 0 (823) 80,403
Net Cost of Services provided to Federal Agencies 136 1,273 529 0 4 2 295 0 0 2,239
Net Cost of Operations 221,449 206,582 240,585 14,084 52,941 68,542 271,377 356,248 0 $ 1,431,808
Resource Use
Cost -Services provided to the Public 22,182 4,260 0 0 0 0 4,004 0 0 30,446
Revenue Earned from the Public 0 0 0 0 0 0 414 0 0 414
Net Cost of Services to the Public 22,182 4,260 0 0 0 0 3,590 0 0 30,032
Cost - Services provided to Federal Agencies 66 0 0 0 0 0 43 0 0 109
Revenue Earned from Federal Agencies 64 0 0 0 0 0 43 0 0 107
Net Cost of Services provided to Federal Agencies 2 0 0 0 0 0 0 0 0 2
Net Cost of Operations 22,184 4,260 0 0 0 0 3,590 0 0 30,034
Recreation
Cost -Services provided to the Public 0 12,762 77,087 0 0 13,999 135,916 223,020 0 462,784
Revenue Earned from the Public 0 1,347 4,486 0 0 177 2,011 0 0 8,021
Net Cost of Services to the Public 0 11,415 72,601 0 0 13,822 133,905 223,020 0 454,763
Cost - Services provided to Federal Agencies 0 6,707 2,851 0 0 146 4,965 0 (237) 14,432
Revenue Earned from Federal Agencies 0 6,531 2,710 0 0 144 4,824 0 (237) 13,972
Net Cost of Services provided to Federal Agencies 0 176 141 0 0 2 141 0 0 460
Net Cost of Operations 0 11,591 72,742 0 0 13,824 134,046 223,020 0 455,223
Serving Communities
Cost -Services provided to the Public 0 7,404 10,104 0 0 9 115,457 0 0 132,974
Revenue Earned from the Public 0 359 0 0 0 0 314 0 0 673
Net Cost of Services to the Public 0 7,045 10,104 0 0 9 115,143 0 0 132,301
Cost - Services provided to Federal Agencies 0 1,769 0 0 0 0 1,394 0 (3) 3,160
Revenue Earned from Federal Agencies 0 1,723 0 0 0 0 1,350 0 (3) 3,070
Net Cost of Services provided to Federal Agencies 0 46 0 0 0 0 44 0 0 90
Net Cost of Operations 0 7,091 10,104 0 0 9 115,187 0 0 132,391
Totals
Cost -Services provided to the Public $ 243,836 $ 247,982 $ 343,152 $ 14,634 $ 60,289 $ 82,817 $ 529,511 $ 579,268 $ 0 $ 2,101,489
Revenue Earned from the Public 341 19,953 20,391 550 7,352 446 5,791 0 0 54,824
Net Cost of Services to the Public 243,495 228,029 322,761 14,084 52,937 82,371 523,720 579,268 0 2,046,665
Cost - Services provided to Federal Agencies 8,155 62,987 12,985 0 127 383 16,769 0 (1,063) 100,343
Revenue Earned from Federal Agencies 8,017 61,492 12,315 0 123 379 16,289 0 (1,063) 97,552
Net Cost of Services provided to Federal Agencies 138 1,495 670 0 4 4 480 0 0 2,791
Net Cost of Operations $ 243,633 $ 229,524 $ 323,431 $ 14,084 $ 52,941 $ 82,375 $ 524,200 $ 579,268 $ 0 $ 2,049,456
III. U.S. Fish and Wildlife Service Financial Statements 54
U.S. Department of the Interior
U.S. Fish and Wildlife Service
Consolidating Statement of Net Cost
for the year ended September 30, 2003
(dollars in thousands)
Endangered
Species
Fisheries and
Habitat
Conservation
Law
Enforcement
Migratory
Birds and
State Programs
National
Wildlife Refuge
System
International
Affairs
General
Operations Eliminations Total
Sustainability of Fish and Wildlife Populations
Cost -Services provided to the Public $ 225,902 $ 104,148 $ 66,732 $ 22,740 $ 66,662 $ 14,611 $ 98,482 $ 0 $ 599,277
Revenue Earned from the Public 230 7,382 6,978 221 396 165 1,120 0 16,492
Net Cost of Services to the Public 225,672 96,766 59,754 22,519 66,266 14,446 97,362 0 582,785
Cost - Services provided to Federal Agencies 7,017 41,629 206 6 3,042 0 2,112 (320) 53,692
Revenue Earned from Federal Agencies 6,843 40,202 200 6 2,925 0 2,078 (320) 51,934
Net Cost of Services provided to Federal Agencies 174 1,427 6 0 117 0 34 0 1,758
Net Cost of Operations 225,846 98,193 59,760 22,519 66,383 14,446 97,396 0 584,543
Habitat Conservation
Cost -Services provided to the Public 37,307 134,499 0 61,755 322,737 0 170,578 0 726,876
Revenue Earned from the Public 0 8,947 0 12,938 9,509 0 3,159 0 34,553
Net Cost of Services to the Public 37,307 125,552 0 48,817 313,228 0 167,419 0 692,323
Cost - Services provided to Federal Agencies 0 31,490 0 12,475 8,619 0 5,395 (468) 57,511
Revenue Earned from Federal Agencies 0 30,536 0 12,387 8,389 0 5,309 (468) 56,153
Net Cost of Services provided to Federal Agencies 0 954 0 88 230 0 86 0 1,358
Net Cost of Operations 37,307 126,506 0 48,905 313,458 0 167,505 0 693,681
Public Use and Enjoyment
Cost -Services provided to the Public 0 6,427 0 9,751 131,783 0 25,365 0 173,326
Revenue Earned from the Public 0 541 0 136 3,285 0 368 0 4,330
Net Cost of Services to the Public 0 5,886 0 9,615 128,498 0 24,997 0 168,996
Cost - Services provided to Federal Agencies 0 6,881 0 68 2,943 0 463 (121) 10,234
Revenue Earned from Federal Agencies 0 6,634 0 66 2,823 0 455 (121) 9,857
Net Cost of Services provided to Federal Agencies 0 247 0 2 120 0 8 0 377
Net Cost of Operations 0 6,133 0 9,617 128,618 0 25,005 0 169,373
Partnerships in Natural Resources
Cost -Services provided to the Public 0 3,490 0 551,884 0 0 4,745 0 560,119
Revenue Earned from the Public 0 0 0 0 0 0 17 0 17
Net Cost of Services to the Public 0 3,490 0 551,884 0 0 4,728 0 560,102
Cost - Services provided to Federal Agencies 0 0 0 0 0 0 34 (5) 29
Revenue Earned from Federal Agencies 0 0 0 0 0 0 34 (5) 29
Net Cost of Services provided to Federal Agencies 0 0 0 0 0 0 0 0 0
Net Cost of Operations 0 3,490 0 551,884 0 0 4,728 0 560,102
Total
Cost -Services provided to the Public $ 263,209 $ 248,564 $ 66,732 $ 646,130 $ 521,182 $ 14,611 $ 299,170 $ 0 $ 2,059,598
Revenue Earned from the Public 230 16,870 6,978 13,295 13,190 165 4,664 0 55,392
Net Cost of Services to the Public 262,979 231,694 59,754 632,835 507,992 14,446 294,506 0 2,004,206
Cost - Services provided to Federal Agencies 7,017 80,000 206 12,549 14,604 0 8,004 (914) 121,466
Revenue Earned from Federal Agencies 6,843 77,372 200 12,459 14,137 0 7,876 (914) 117,973
Net Cost of Services provided to Federal Agencies 174 2,628 6 90 467 0 128 0 3,493
Net Cost of Operations $ 263,153 $ 234,322 $ 59,760 $ 632,925 $ 508,459 $ 14,446 $ 294,634 $ 0 $ 2,007,699
III. U.S. Fish and Wildlife Service Financial Statements 55
C. Required Supplementary Information
Required Supplementary Information (RSI) covers:
• Combining Statement of Budgetary Resources
• Facilities Management
III. U.S. Fish and Wildlife Service Financial Statements 56
Combining Statement of Budgetary Resources
U.S. Department of the Interior
U.S. Fish and Wildlife Service
Combining Statement of Budgetary Resources
for the year ended September 30, 2004
(dollars in thousands)
Resource
Management
Sport Fish
Restoration
Grants
Federal Aid
in Wildlife
Restoration
Grants
Other
Grants
Total
Grants Miscellaneous
Total
Budgetary
Accounts
Budgetary Resources:
Budget Authority:
Appropriations Received $ 963,352 $ 463,375 $ 222,890 $ 273,255 $ 959,520 $ 180,348 $ 2,103,220
Net Transfers, Current Year Authority (+/-) 5,200 (117,960) 0 0 (117,960) 18,320 (94,440)
Unobligated Balance:
Beginning of Fiscal Year 30,365 149,178 61,510 180,633 391,321 149,167 570,853
Net Transfers, Unobligated Balance, Actual (+/-) 15,296 0 0 0 0 0 15,296
Spending Authority from Offsetting Collections:
Earned
Collected 137,397 0 0 1 1 1,665 139,063
Receivable from Federal Sources (3,044) 0 0 0 0 (587) (3,631)
Change in Unfilled Customer Orders
Advance Received (344) 0 0 0 0 0 (344)
Without Advance from Federal Sources 71,794 0 0 0 0 (911) 70,883
Subtotal: Spending Authority from Offsetting Collections 205,803 0 0 1 1 167 205,971
Recoveries of Prior Year Obligations 16,212 36,475 15,270 7,335 59,080 4,010 79,302
Permanently Not Available (11,932) 0 0 (2,929) (2,929) (1,462) (16,323)
Total Budgetary Resources $ 1,224,296 $ 531,068 $ 299,670 $ 458,295 $ 1,289,033 $ 350,550 $ 2,863,879
Status of Budgetary Resources:
Obligations Incurred:
Direct $ 957,186 $ 344,173 $ 242,320 $ 245,023 $ 831,516 $ 207,503 $ 1,996,205
Reimbursable 203,682 0 0 0 0 140 203,822
Total Obligations Incurred 1,160,868 344,173 242,320 245,023 831,516 207,643 2,200,027
Unobligated Balance: 0
Apportioned 59,831 186,894 57,349 213,272 457,515 142,909 660,255
Unobligated Balance Not Available 3,597 0 0 0 0 0 3,597
Total Status of Budgetary Resources $ 1,224,296 $ 531,067 $ 299,669 $ 458,295 $ 1,289,031 $ 350,552 $ 2,863,879
Relationship of Obligations to Outlays:
Obligations Incurred $ 1,160,868 $ 344,173 $ 242,320 $ 245,023 $ 831,516 $ 207,643 $ 2,200,027
Obligated Balance, Net, Beginning of Fiscal Year 269,263 337,866 193,561 318,757 850,184 92,280 1,211,727
Obligated Balance, Net, End of Fiscal Year:
Accounts Re